In order to encourage the wine production industry, the italian government provided low-interest loans for the purchase of equipment and plants. The government also gave cash grants and made tax reductions. Which instrument of trade policy is being used by the italian government?.

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25-10-2022
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In order to encourage the wine production industry, the italian government provided low-interest loans for the purchase of equipment and plants. The government also gave cash grants and made tax reductions. Which instrument of trade policy is being used by the italian government?.

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Along with providing grants in cash, the government also lowered taxes. Which trade policy tool the Italian government is employing is subsidies.

What are the two ways that a government can intervene in trade to further its foreign policy goals?

Governments can influence commerce through a wide range of instruments, such as: Tariffs, which act as a tax on imported goods and shield native businesses from international competition. Low interest loans, tax breaks, or cash gifts are examples of subsidies.

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Protectionism is the practice of defending domestic industries against foreign competition by the imposition of tariffs, subsidies, import quotas, and other barriers to their products.

To Know more about subsidies.

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