Why Do Countries Subsidize Exports When They Suffer Net Welfare

question 25

Multiple Choice

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

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

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Definitions:

Strategic Plans

Detailed documents that outline an organization's goals for the future and the actions needed to achieve those goals.

Specific Department

A distinct division within an organization, focused on a particular area of work or specialization.

Tactical Plans

Short-term, detailed plans formulated to implement strategies and achieve specific objectives within an organization.

Operational Plans

Detailed, short-term action plans that outline how strategic goals will be achieved by an organization, specifying resources needed and processes to follow.