A subsidy on exports is in a sense the opposite of a tariff


A subsidy on exports is, in a sense, the opposite of a tariff on imports.

If a tariff lowers efficiency, would you expect a subsidy to increase efficiency or lower it?

 

How do tariffs and subsidies compare in the way they distort trade according to comparative advantage?

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Business Economics: A subsidy on exports is in a sense the opposite of a tariff
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