Export Subsidies

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?