Governments frequently implement commercial policies to regulate international trade and protect domestic industries. Which of the following trade policy instruments refers to a direct financial grant or tax concession granted by the government to domestic producers to lower their production costs and boost exports?
- An export subsidyCevap
- BAn import quota
- CA protective tariff
- DA trade embargo
Cevap
An export subsidy is a financial incentive paid by the government to domestic producers to lower production costs and encourage export sales.
An export subsidy is a direct or indirect financial aid (such as cash grants, low-interest loans, or tax relief) paid by the government to domestic producers, allowing them to reduce selling prices and increase competitiveness abroad.
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Anahtar Kavram
Export Subsidies and Commercial Policy Instruments