Regional Subsidies and International Trade
Regional subsidies originate in the fact that the distribution of levels of income and employment among regions within national frontiers rarely approximates to what is considered socially acceptable. The differences in economic conditions between one region and another may be attributable to regional preferences, and market imperfections, which reduce the mobility of factors of production: or, if such differences are thought to derive from natural causes, such as remoteness, they may be regarded as being at variance with a social preference for balanced development of the whole country.
KeywordsInternational Trade Regional Policy European Monetary Union Free Trade Area Public Subsidy
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