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Why Might a Foreign Export Subsidy Decrease Welfare in the Foreign

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Essay

Why might a foreign export subsidy decrease welfare in the foreign country? Why might the foreign country provide such a subsidy despite the adverse welfare effect?


Definitions:

Exosystem

A term from ecological systems theory referring to external social settings that indirectly influence an individual’s development, such as parents' workplaces.

Vice President

A person who is second in command in an organization, government, or corporation, directly below the president.

Ethology

The scientific study of animal behavior, often with a focus on behavior under natural conditions, and the understanding of behavior from an evolutionary perspective.

Biologically-Oriented

A perspective or approach that focuses on the biological or genetic factors in the study of organisms or behaviors.

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