1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Ghella [55]
3 years ago
11

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.
Social Studies
1 answer:
Yuri [45]3 years ago
3 0

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 that tariffs 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.

You might be interested in
What type of economic system exists when individuals answer the three basic economic questions?
vampirchik [111]
I believe the correct answer from the choices listed above is option B. It is market economy that exists when individuals answer the three basic economic questions. It <span> is an </span>economic<span> system in which </span>economic<span> decisions and the pricing of goods and services are guided solely by the aggregate interactions of a country's individual citizens and businesses.</span>
7 0
3 years ago
Ý nghĩa của thần thoại cây lúa
Natali [406]
Can you please translate this into English? No hate towards you unfortunately I cannot answer this question as I do not understand your language
5 0
2 years ago
Mad hatter publishing specializes in genre fiction for young adults. a movie company decides to make an adaptation of one of its
Sladkaya [172]
The choices to your question are:
<span>A. Q or R
B.Q or T
C.T o V
D.V or Q
</span>
I would go with B. Q or T. I hope that this is the answer that you were looking for and it has helped you.
7 0
3 years ago
How did the Inca's and Pizzaro interact towards eachother?
snow_tiger [21]
            <span> Pizarro seized the Inca emperor,Atahualpa,massacred the senior Inca nobility,extracted a huge ransom in gold and silver for Atahualpa,then murdered him.Pizarro then went on to conquer an effectively leaderless Inca empire.

Much the same with Cortes and the Aztecs - initially pretending to be friendly,Cortes seized the Aztec emperor,extracted a huge ransom for him before murdering him and,although forced to retreat shortly after by superior numbers,soon returned with Mexican native allies to destroy the Aztec empire and conquer it for Spain.

Cortes' conquest was much harder fought than that of Pizarro,but basically their interaction with the natives was the same - kidnap th leader,extort a ransom,kill the hostage anyway,then attack and conquer their people.</span>
4 0
3 years ago
What research could a developmental psychologist rely on when explaining to parents infant interaction and adult attention to ch
Marat540 [252]

Answer:

Brain Scanning Technique Results

Explanation:

Based on the information provided within the question it can be said that the developmental psychologist can rely on Brain Scanning Technique Results. This is because these results have found out that the facial features of infants activate a specific part of the brain called the "fusiform gyrus" within an interaction. Therefore they can explain what the children's faces mean and how they affect the brain.

8 0
3 years ago
Other questions:
  • What does neutral nean in social studie​
    14·1 answer
  • A researcher wanting to determine if amount of hours sleeping was related to one’s attitude would evaluate the research study us
    10·2 answers
  • Which were characteristics of Alexander the Great's empire? Select the two correct answers. A. Alexandria, Egypt became a center
    11·1 answer
  •    Based on the Family Educational Rights and Privacy Act (FERPA), who has the right to access a child’s records? 
    5·1 answer
  • ILL GIVE YOU BRAINLIEST PLS FAST. Which of these would have been MOST likely to have been built by the Catholic Church in the Am
    5·2 answers
  • Less serious crime that are punishable by up to a year in prison?
    6·1 answer
  • What was the significance of General Thomas "Stonewall" Jackson's leadership at the Battle of Bull Run?
    13·1 answer
  • Which of the following helps coastal cities support their populations?
    7·1 answer
  • Which step of a citizen action plan would include a community survey? Determining the solution and criteria Evaluating the publi
    12·1 answer
  • When giving a speech in class, you spend most of the first five minutes wondering what your audience is thinking of you. This is
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!