The Republic of Zander is a member of the European Union (EU). As an EU member, the Republic of Zander gives cash grants to domestic agricultural producers. Which of the following instruments of trade policy is being used by the government of The Republic of Zander? subsidies domestic producers tariffs

Question

Jeramiah Mills

Social Studies

5 March, 23:33

The Republic of Zander is a member of the European Union (EU). As an EU member, the Republic of Zander gives cash grants to domestic agricultural producers. Which of the following instruments of trade policy is being used by the government of The Republic of Zander? subsidies domestic producers tariffs

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Answers (1)

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Aryanna Hatfield · Answer 1

Answer:. Answer:

subsidies

Explanation:

Whenever a Country offers non refundable cash in the form of grants to promote certain sector of the economy it could be termed as a subsidy.

Since in this scenario, the Republic of Zander gives cash grants to domestic agricultural producers it is in effect subsidizing their cost of production; leading to lower cost of agricultural produce.