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What is a SUBSIDY? (Subsidies EXPLAINED)
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A subsidy is a form of TRADE PROTECTION (protectionism) that helps produce supply more at lower cost.
The government helps to SUBSIDISE the costs of production...which allows domestic producers to produce more. And steal market share from foreign producers!!
Subsidy graph: 0:40 to 3:43
Economic effects of subsidy: 3:43 onwards
The government helps to SUBSIDISE the costs of production...which allows domestic producers to produce more. And steal market share from foreign producers!!
Subsidy graph: 0:40 to 3:43
Economic effects of subsidy: 3:43 onwards
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