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

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