Th4.1: ^^^ Subsidies to Domestic Producers

Question 1

What are subsidies to domestic producers?

Answer 1

payments to domestic producers which lower their costs and help them to be more competitive by enabling cheaper prices

Question 2

How do subsidies help a firm to be competitive?

Answer 2

by ensuring they have the most up to date technologies

Question 3

Subsidies also may be given to domestic firms…

Answer 3

that compete with imports, usually in the form of indirect subsidies like tax breaks or cheap loans