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A(n) _____ helps domestic producers to compete against foreign imports. Group of answer choices ad valorem tariff specific tariff import quota subsidy

Answer :

Answer:

Subsidy

Explanation:

Subsidies refers to the amount of money granted to the firms or business by the government of the home nation. There are various types of subsidies such as low-interest loans, cash grants, tax relief, etc. These allocation of subsidies helps the domestic firms to produce more output at a lower cost of production and compete in the world market. Subsidy is provided by the government to enhance and protect the domestic producers from the foreign competition.

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