Export incentives motivate companies to export certain types of products or services. They are created usually by government and can have form of regulatory changes, tax discounts, legal solutions or direct monetary form.
The government may decide to e.g. subsidize export in order to make easier for companies to enter other markets. That however may be received as dumping practice by another country, which can begin to subsidize own producers or to increase customs. Therefore export incentives should be applied after thorough analysis of the global market.
The World Trade Organization (WTO) prohibits using most export incentives. The except are lesser-developed countries who can use them to some extent.
- Cadot, O., Gourdon, J., Kathuria, S., Malouche, M. M., & Sattar, Z. (2016). Trade Policy, Export Incentives, and Consumer Welfare. Strengthening Competitiveness In Bangladesh—Thematic Assessment: A Diagnostic Trade Integration Study.
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