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What balancing factors can firms in developing countries use to enable them to compete with exporters from countries which subsidize labour, production and manufacturing costs?

image of What balancing factors can firms in developing countries use to enable them to compete with exporters from countries which subsidize labour, production and manufacturing costs?

Firms in developing countries have recourse to an extremely small range of measures to help them to compete in third markets with subsidized products from other countries. Other than asking their own governments to grant similar subsidies (which, in view of the limited resources in developing countries, is rather difficult), the exporters may request their authorities to bring the matter before WTO.

Related Subject(s): International Trade and Finance
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