What do subsidies protect?

Updated: 6/20/2023
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Lvl 1
9y ago

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Subsidies protect industries or products by providing financial support from the government, lowering the costs for producers and helping them compete in the market.

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8mo ago
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02 Hira Irshad

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11mo ago

To secure the lower level of industries

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Lvl 13
3mo ago

The interests of the capitalist class.

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Wiki User

9y ago

to protect domestic industry

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Q: What do subsidies protect?
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Related questions

What is the purpose of Subsidies?

To protect domestic producers against international competition

What is protectionist trade?

Trade in which there are tariffs and subsidies put in place to protect one's domestic industries.

What receives government subsidies that are in place to protect the population rather for economic reasons?

small farms in France

What recipients do the government subsidies are in place to protect the population rather to benefit the economy?

tobacco growers in the United States


Costs and conquenses of providing subsidies

What are the Pros and cons of agricultural subsidies?

Pros: - Subsidies would allow for farmers to compete with low-priced foreign imports - Subsidies would keep the cost of goods down - Subsidies would help farmers maintain a steady income, helping to protect them from variations in year-to-year income. (Such as a bad growing year. Some years, there are fewer crops that are produced, be it due to poor weather or other factors, and these loss of crops would dramatically harm a farmer's income. Subsidies would help make up this difference. Cons: -It costs a fortune (remember, we are in $14 trillion in debt) -Subsidies tend to go to larger farmers, who would not be threatened as much by a bad growing year. -subsidies would go against the free market

What are welfare payments or consumer subsidies?

Costs and conquenses of providing subsidies

What is Government subsidy?

A government subsidy is monetary assistance granted by the government. This includes things like, production subsidies, employment subsidies, and export subsidies.

What is one reason Europeans governments protect the growing of food with subsidies even though imported food would be cheaper?

to have food in case imports are cut off.

A government policy that protects domestic producers against international competition?


Disadvantage of subsidies?

Subsidies may encourage continued inefficiency among producers. Workers and firms will be less productive due to the extra income they receive through subsidies.

Which kinds of government financial aid and land grants paid for railroad construction?