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tariffs, quotas and export subsidies, free trade, protectionism
An export subsidy is a direct payment to domestic firms. Subsidies can be used to correct market failures, to encourage the production or consumption of goods that generate positive externalities or that reduce negative externalities. Subsidies can also be used as a form of protectionism. Protectionism is the use of government policy to encourage people to switch their spending from foreign to domestic goods.
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