Problem
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?
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.