GK
ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Under the Common Agricultural Policy, exports of any surplus quantities of EU produce are encouraged through the usage of
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variable levies
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counter trade
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trigger prices
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export subsidies
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Explanation:
Detailed explanation-1: -Examples of export subsidies include regulatory changes to incentivize certain companies to export more, direct payments to companies to cover the difference between the local price and world price, changes in taxes, and low-cost loans.
Detailed explanation-2: -An export subsidy lowers consumer surplus and raises producer surplus in the exporter market. An export subsidy raises producer surplus in the export market and lowers it in the import country market.
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