Asked by
Shivani Singh
on Nov 22, 2024
Verified
The government of Zandria has adopted an economic policy that it thinks would help it gain favorable political treatment in the future. Under this policy, the government provides direct assistance to domestic producers in the form of tax breaks, grants, cash payments, low-interest loans, and government-owned equity. In this scenario, the government of Zandria is using _____.
A) subsidies
B) tariffs
C) sanctions
D) quotas
Subsidies
Government support for industries.
Tax Breaks
Financial incentives in the form of reduced tax rates, deductions, or credits, designed to encourage certain economic activities or investments.
Low-Interest Loans
Loans offered with a lower than average interest rate, making them more affordable for the borrower.
- Gain an understanding of the impact governmental policies have on shaping the trade environment, both locally and globally.
Verified Answer
AW
Learning Objectives
- Gain an understanding of the impact governmental policies have on shaping the trade environment, both locally and globally.