What is an "export subsidy"?
A) a payment by one government to another for exports
B) a payment (or other benefit) to domestic firms by their government to help them sell exports more cheaply
C) the rule that says all exports must be taxed before they leave the port
D) a provision that exporters must get their payments indirectly through a third party

Question

Quizplus · Accepted Answer

An export subsidy is a payment or benefit provided by a government to domestic firms to encourage them to sell exports more cheaply, thereby making them more competitive in international markets. This subsidy can take various forms, such as direct payments, tax breaks, or low-interest loans. The goal of an export subsidy is to increase a country's exports and improve its balance of trade.

What Is an "Export Subsidy