An export subsidy has the opposite effect on terms of trade to the effect of an import tariff. Domestically a tariff will raise
the price of the import good, deteriorating the domestic terms of trade. A production subsidy for the export product will lower the local price of the export good, lowering the domestic terms of trade for the country. Hence the export subsidy and the import tariff have the same effect. This analysis seems to contradict the first sentence in this paragraph. Discuss this paradox.
Answer: An export subsidy achieves cheaper goods in foreign markets while an import tariff makes imported goods more expensive.
Explanation: An export subsidy and an import tariff have different goals. For the domestic market, subsidies reduce the price of domestic goods and tariffs increase the price of foreign goods, making domestic goods more competitive, more desirable and fueling the domestic market.
When an imported good has enjoyed a substantial production subsidy, the price will be so low thattariffs will <u>not</u> prevent it from being sufficiently competitive in the foreign market against their domestic goods. In this case it achieves the same goal as a production subsidy.
Both ideas seem contradictory at first, but are both true.
Life would be pretty difficult. You or most of your family would probably be unemployed. Ecspecially rural America. Once money ran out, they didn't have much food either. Many charities and the government opened soup kitchens, so people wouldn't strave to death. People didn't have good clothes. Usually hand-me-downs that were patched up because of all the holes. Many kids also had to drop out of school.
We are born with free rights to exercise. Explanation. and the ression i think that is becuse no one can just do that it would make you do lots of un thinking.
