It is generally the case that imposing a countervailing duty in response to a foreign export subsidy provides less well-being for a country than had the country not imposed the countervailing duty.

Question

Quizplus · Accepted Answer

Imposing a countervailing duty may lead to retaliation from the exporting country, reducing overall trade and economic welfare. Additionally, the costs of administering and enforcing the countervailing duty may exceed the benefits. Therefore, the country may be worse off than if it had not imposed the duty.

It Is Generally the Case That Imposing a Countervailing Duty