export incentives

export incentives

the financial assistance given to domestic firms by the government as a means of promoting EXPORTS and assisting the country's balance of payments. Export incentives include direct subsidies to lower export prices (EXPORT SUBSIDY), tax concessions (remission of profits earned on exports), credit facilities (cheap export finance) and financial guarantees (provision for bad debts, etc.). Export incentives are often viewed as an

‘unfair’ trade practice by other countries and frequently result in retaliatory action being taken by them. See COUNTERVAILING DUTY, BEGGAR-MY-NEIGHBOUR POLICY.

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