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Some positive elements are that it helps domestic consumers, firms and, workers. However, it could lead to inflation or an overall increase in price of products across all sectors. People may also end up paying higher taxes on goods.

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Q: Is there any disadvantage to a government subsidizing domestic firms to make them able to complete in price with cheaper imported goods?
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Is their any disadvantage to a government subsidizing domestic firms to make them able to compete in price with cheaper imported goods?

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