Trade Subsidy Flashcards
(2 cards)
1
Q
Trade subsidy
A
Subsidy given to domestic suppliers
2
Q
Aim of a trade subsidy
A
To reduce costs of production -> passed onto consumers as low prices -> makes firm more competitive
Trade subsidy
Subsidy given to domestic suppliers
Aim of a trade subsidy
To reduce costs of production -> passed onto consumers as low prices -> makes firm more competitive