(Answered) Select all that applyHow do export subsidies affect international trade?Select all that applyHow do…

➤ How do export subsidies affect world prices and trade flows?
By increasing exported supply, subsidies tend to lower export prices in destination markets and shift demand toward subsidized goods. That can cause trade diversion, oversupply, and depressed global prices. Importers benefit from lower prices but exporting countries may suffer reduced welfare if the subsidy distorts domestic resource allocation or crowds out other sectors.