Why Do Countries Subsidize Exports When They Suffer Net

question 102

Multiple Choice

Why do countries subsidize exports when they suffer net
Welfare losses from these subsidies?

• A)Exporters receiving the subsidy engage in rent­seeking activities.
• B)Exports generate positive externalities.
• C)Exports provide foreign currency.
• D)Exports provide jobs.

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Definitions:

Private-Label

Products that are manufactured by one company but branded and sold under another company's or retailer's brand name.

Manufacturer

A person or company that makes goods for sale, especially in a large-scale operation involving machinery and labor.

Generic

Products or content that lack specific branding, characteristics, or unique features, making them universally applicable.

Packaging

The process of designing and producing the container or wrapper for a product.