Practice mode Non-Tariff Trade Barriers

For the American public as a whole, what is the effect of export subsidies paid by foreign governments on goods sold to the United States?

Correct answer B. They help more than they hurt

Explanation

Foreign subsidies let Americans buy goods below cost, and the consumers' gain exceeds the loss to competing US producers, so the net effect on the country is positive.

Report a problem

Answer checked How we write and check questions

Tip: press A, B, C or D to answer, and N for the next question.

Advertisement

Have a question about this answer?

Your email address will not be published. Required fields are marked *

Links and website addresses are not allowed in comments.