How do subsidies distort trade patterns and lead to inefficiencies?

Economics:
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ISBN:9781285859460
Author:BOYES, William
Publisher:BOYES, William
Chapter35: International Trade Restrictions
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How do subsidies distort trade patterns and lead to inefficiencies?

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Subsidies are mostly the government monetary assistance, mainly in the field of production of a country. When subsidy is provided, it is usually done so to promote some kind of economic activity.

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