An export subsidy for a product will benefit:

Question

Quizplus · Accepted Answer

An export subsidy provides financial assistance to domestic producers to sell their products at lower prices in the foreign market. This makes the product more affordable for foreign consumers and increases demand for the product, benefiting foreign consumers. However, it also creates distortions in the international market and may harm foreign producers who are unable to compete with the subsidized product. Domestic consumers may not see any benefit from the export subsidy, and the cost of the subsidy is typically borne by domestic taxpayers.

An Export Subsidy for a Product Will Benefit