Foreıgn Trade Deneme Sınavı Sorusu #1374697
"Government tax and subsidy programs alter the prices charged for goods and services. These changes can be sufficient to generate advantages in production of certain products. In these circumstances, advantageous trade may arise solely due to differences in government policies across countries."
Which one of the basic reasons below is directly related with the statment above?
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Differences in Technology: |
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Differences in Resource Endowments |
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Existence of Government Policies |
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Existence of Economies of Scale in Production |
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Differences in Demand |
Existence of Government Policies: Government tax and subsidy programs alter the prices charged for goods and services. These changes can be sufficient to generate advantages in production of certain products. In these circumstances, advantageous trade may arise solely due to differences in government policies across countries.
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