Define the use of export subsidies

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Reference no: EM131479710

Qiuestion: 1. To improve national welfare, a large country would do better to implement an export subsidy rather than an import tariff. Is this true or false? Explain why.

2. Who gains and who loses when governments in Europe and the United States provide subsidies to Airbus and Boeing?

3. Provide motivations for the use of export subsidies. Does your answer depend on whether firms compete under perfect or imperfect competition?

Reference no: EM131479710

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