Question

Export credit subsidies are represented by:

Export credit subsidies are represented by: loans to sellers of imports O higher interest rates to borrowers O loans to importers all of the above none of the above

Answer 1

None of the above:

Export subsidy is the government policy which is established to encourage the export of goods and discourage sale of goods on the domestic market through direct payments, Loan to exporter with less interest rate, tax relief for exporters, or government-financed international advertising etc. An export subsidy reduces the price paid by foreign importers, which means domestic consumers pay more than foreign consumers. It directly encourage the export and there is no connection with import