Learning Path
Question & Answer1
Understand Question2
Review Options3
Learn Explanation4
Explore TopicChoose the Best Answer
A
To promote domestic production
B
To increase government revenue
C
To reduce unemployment
D
To control inflation
Understanding the Answer
Let's break down why this is correct
Answer
The primary purpose of export subsidies in international trade is to make a country's goods cheaper and more attractive to foreign buyers. When a government gives financial support to its exporters, it helps them lower their prices compared to products from other countries. This can lead to increased sales abroad, boosting the local economy and creating jobs. For example, if a country provides a subsidy to its farmers, they can sell their crops at a lower price internationally, making them more competitive. Overall, export subsidies aim to enhance a country's presence in global markets and support domestic industries.
Detailed Explanation
Export subsidies help local businesses sell their products to other countries. Other options are incorrect because Some might think subsidies help the government earn more money; People may believe that subsidies directly create jobs.
Key Concepts
export subsidies
Topic
Types of Subsidies
Difficulty
easy level question
Cognitive Level
understand
Ready to Master More Topics?
Join thousands of students using Seekh's interactive learning platform to excel in their studies with personalized practice and detailed explanations.