LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory A government introduces energy subsidies to reduce production costs. What is the likely effect on international marketing competitiveness?

Question

LG 1. Knowledge Comprehension

LO 1.1. Generate knowledge of core concept and theory A government introduces energy subsidies to reduce production costs. What is the likely effect on international marketing competitiveness?

Answer

It reduces productivity by distorting market incentives

Answer

Domestic producers gain a temporary cost advantage, improving export potential.

Answer

It has no effect because subsidies do not influence costs.

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LG 1. Knowledge Comprehension LO 1.1. Generate knowledge of core concept and...

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