import subsides

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    Created by
    sahara

    Cards (6)

    • What are subsidies normally given as?
      Indirect subsidies
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    • Why are indirect subsidies preferred over direct subsidies?
      They help domestically produced goods compete against imports
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    • What forms can indirect subsidies take?
      Cheap loans or tax breaks on investment
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    • How do cheap loans help firms compete against imports?
      They reduce the cost of borrowing for investment
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    • What is the purpose of tax breaks on investment for firms?
      To allow firms to compete more effectively against imports
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    • What are the main characteristics of indirect subsidies?
      • Given as indirect rather than direct
      • Help domestically produced goods compete against imports
      • Take the form of cheap loans or tax breaks
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