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(b) Use a diagram of the World Market to illustrate the consequences of the Swiss government introducing an export subsidy for the welfare of the
(b) Use a diagram of the World Market to illustrate the consequences of the Swiss government introducing an export subsidy for the welfare of the foreign country. Mark areas on your diagram and fill the table below. Shade the area corresponding to their gains/losses induced by the sub- sidy. (Private sectors are non-government sector, it consists of consumers and producers,) Free Trade Export Subsidy Home private sector(Producer) Foreign private sector(Consumer) Home Government Home overall
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