Subsidies

Governments also frequently subsidize local industries to help them compete in the global market. Subsidies come [blank] of tax credits or direct payments. The most commonly used are farm subsidies. That allows producers to lower the price of local goods and services. This makes the products cheaper even when shipped overseas. Subsidies work even better than tariffs. This method works best for countries that rely mainly on exports. But sometimes subsidies can have the opposite effect. The Agricultural Adjustment Act of 1933 [blank] the government to pay farmers [blank] to grow crops or livestock, which let their fields rest and regain nutrients. It helped the agriculture industry but [blank] food costs during the Depression.