What is called if the payments are made directly by the government to the domestic
companies to encourage exports or to protect them from imports?
a) Aids
b) Export tariffs
c) Subsidies
d) Voluntary export restraints
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c) Subsidies is the term that refers to payments that are made directly by the government to the domestic companies to encourage exports or to protect them from imports.
What are subsidies?
- Generally, we can describe subsidy as money or any other kind of benefit that is given by the government to private, public or households for the benefit of people.
- A subsidy can also be referred to as a government incentive.
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