A.Use a demand and supply diagram to explain the effect of an export subsidy. Is there a case for the government using subsidies to encourage the development of domestic industries by helping them win...

A.Use a demand and supply diagram to explain the effect of an export subsidy. Is there a case for the government using subsidies to encourage the development of domestic industries by helping them win export markets? Is this fair play, or is it a form of hidden protectionism?

B. What are the three most important export industries in your country? Examine

their export performance during the past decade. What factors explain your

country’s comparative advantage in these industries? Is Porter’s diamond useful in

this exercise?