Export Subsidies

Export subsidies are financial incentives given by governments to domestic producers to encourage them to sell their goods abroad. By providing these subsidies, governments help lower production costs, making exports cheaper and more competitive in international markets. While this can boost national businesses and create jobs, it may also lead to trade disputes, as other countries might view it as unfair competition. Overall, export subsidies aim to strengthen a country's economy by promoting its products globally, but they can also create tensions in international trade relations.