Question

Why might a foreign export subsidy decrease welfare in the foreign country? Why might the foreign...

Why might a foreign export subsidy decrease welfare in the foreign country? Why might the foreign country provide such a subsidy despite the adverse welfare effect?

Homework Answers

Answer #1

The government provides an export subsidy to boost export and increase the balance of payment. Through export subsidy, it can reduce current account deficit.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Why might a foreign export subsidy decrease welfare in the foreign country? Why might the foreign...
Why might a foreign export subsidy decrease welfare in the foreign country? Why might the foreign country provide such a subsidy despite the adverse welfare effect?
1) How might an export tariff in a large country improve the country's economic welfare? Group...
1) How might an export tariff in a large country improve the country's economic welfare? Group of answer choices a) The export tariff will never improve the country's welfare, since deadweight consumption and production losses always outweigh terms of trade gains. b) The export tariff will always improve the country's welfare, since there are no deadweight consumption and production losses. c) The export tariff will improve the country's welfare if deadweight consumption and production losses are greater than terms of...
In the exporting country, an export subsidy will: a) hurt consumers but raise the overall economic...
In the exporting country, an export subsidy will: a) hurt consumers but raise the overall economic welfare of the exporting country. b) hurt consumers but raise the overall economic welfare of the exporting country. c) hurt consumers and lower the overall economic welfare of the exporting country. d) hurt consumers but raise the overall economic welfare of the exporting country. Rent-seeking activities are: a) foreign suppliers' efforts to reduce quotas. b) landowners' efforts to receive higher returns for their land....
. A foreign country produces and subsidizes Good Z. The subsidy causes the world price with...
. A foreign country produces and subsidizes Good Z. The subsidy causes the world price with the subsidy to be below the world price without the subsidy. For the parts below, analyze what happens when the foreign country stops its subsidy of Good Z. [You don’t need graphs for this question.] (a) Consider the effect on a small domestic country that produces and exports Good Z. What happens to its consumer surplus, producer surplus, and total surplus for Good Z?...
2. Suppose that Economica is a large country. The export supply curve is as follows Price...
2. Suppose that Economica is a large country. The export supply curve is as follows Price Quantity 60 60 80 120 100 180 120 240 Assume that Economica imposes a $20 tariff on imported oil. Assume that the world price of oil is initially $80. i. the terms of trade effect j. total deadweight loss k. effect on foreign welfare l. effect on world welfare
Why might the use of a tariff to decrease aggregate unemployment in a country eventually generate...
Why might the use of a tariff to decrease aggregate unemployment in a country eventually generate an increase in aggregate unemployment in that country?
(a) Using a demand/supply diagram, illustrate and explain the effects of the imposition of an export...
(a) Using a demand/supply diagram, illustrate and explain the effects of the imposition of an export tax on a good Y by a home country's government on (i) the home country's consumers of Y, (ii) the home country's producers of Y, and (iii) the home government's tax revenues. (Assume that the country is a "small” country.) Then evaluate the "net welfare effect” of the tax on the country. Why might a country want to impose an export tax? Explain. (b)...
Suppose there is a small country importing cars from foreign country. Which of the following statement...
Suppose there is a small country importing cars from foreign country. Which of the following statement about the welfare change when a tariff is imposed on imports is correct compared with free trade? Total welfare of the home country increases Both home producer surplus and home consumer surplus increase Both home producer surplus and home consumer surplus decrease Home consumer surplus decreases
In what ways might corruption influence the amount of foreign direct investment that a country receives?
In what ways might corruption influence the amount of foreign direct investment that a country receives?
Which foreign country would be the most challenging for you to work in, and why? Which...
Which foreign country would be the most challenging for you to work in, and why? Which foreign country would be the most exciting for you to work in, and why?