Export Subsidy in a Small Country | Welfare Analysis & Deadweight Loss Explained
This lecture analyzes the welfare effects of an export subsidy when implemented by a small country in international trade. Learn how export subsidies distort domestic prices, reduce consumer surplus, and create deadweight loss when a country is too small to affect world prices.
for quick review and full notes on tariff and export subsidies : https://nishamalhotra.com/trade-polic...
📌 What You'll Learn:
• How export subsidies work in a small country context
• Why small countries cannot influence world prices
• The impact on domestic consumers and producers
• Consumer surplus loss from higher domestic prices
• Producer surplus gains from the subsidy
• Government cost of the subsidy program
• Net welfare change and deadweight loss calculation
⏱️ Chapters:
No chapters available for this video.
🔔 Subscribe for more videos on international trade
👍 Found this helpful? Like and share with your classmates!
💬 Questions or suggestions? Leave a comment below.
---
Keywords: export subsidy small country, welfare effects of export subsidy, deadweight loss trade policy, international trade welfare analysis, small country trade model, export subsidy consumer surplus, trade policy economics, undergraduate international trade