Because export subsidies tend to result in domestic exporters charging lower prices on their goods sold overseas, the home country’s: | Faculties

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Shiva Ram

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📊 International Economics

Q. Because export subsidies tend to result in domestic exporters charging lower prices on their goods sold overseas, the home country’s:

(A) Export revenues will decrease
(B) Export revenues will rise
(C) Terms of trade will worsen
(D) Terms of trade will improve

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✅ Correct Answer: (C) Terms of trade will worsen

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