Export Subsidy (cont.) An export subsidy raises the price of a good in the exporting country, while lowering it in foreign countries.
{"Image DocumentName": "Export Subsidy (cont.)An export subsidy raises the price of a good in the exporting country, while lowering it in foreign countries.", "Image ImageDescription": "Suppose A and B produce same products, if A exports to get higher price, and if domestic price doesn\u2019t change, B will envy and export too. At a result, no firm will supply the domestic market. Consumers have to pay Pw+s to get the exportable. In contrast to a tariff, an export subsidy worsens the terms of trade by lowering the price of domestic products in world markets.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}