Country Exports

Please address the below listed question in APA format. Countries want to protect their own markets, but also they are keen to support local manufacturing and help local products succeed on the global markets. Thus, some countries resort to subsidizing exports in order to make the products cheaper on the global market and thus more successful. This, of course, helps the companies gain market share, and helps the government enjoy a larger tax income as local companies prosper.

For this discussion, use the World Trade Organization’s Export Subsidies and Competition website and related article

in this module’s resources to research new stories and scholarly articles for examples of export subsidies. Once you have found an example of an export subsidy, summarize the country, product, industry (or even the company) to which this subsidy applies. Do you agree or disagree with the subsidy? Justify your answer. Do you think it helped the country, industry, or the company?

preview of the answer…

The government may formulate policies that are aimed at encouraging export of certain commodities while discouraging domestic consumption of such goods through low-cost loans, financing international advertising, direct payments as well as tax reliefs. This constitutes export subsidy whereby foreign consumers pay less in relation to the price paid by domestic consumers for the same product. India is such a country which offers export subsidies to a number of its export produce (Mukherjee & Mukherjee, 2012). India offers such subsidies mostly to elevate its commodities’ performance in the international market. An example of an export product that benefits from the export subsidy is garment products….

APA 350 words