Question

Which one of the following statements correctly describes export subsidies? A. Export subsidies are excise taxes or duties placed on imported products. B. Export subsidies are government payments to domestic producers to enable them to charge lower prices and sell more goods in world markets. C. Export subsidies are maximum limits on the quantity or total value of specific products imported to a nation. D. Export subsidies are licensing requirements, unreasonable quality standards, and the like designed to impede imports.

Answer 1

The answer is B.

Export subsidies are a mechanism for governments to increase exports and decrease domestic sales. There are a number of ways this can be achieved and one such way is to subsidize the domestic producers directly. Essentially export subsidies mean foreign importers pay less than domestic consumers, promoting exports.

Answer 2

The answer is B, i hope this helps!!!!