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Economics

In the above example, we saw that the US government gives massive sums of money to farmers for production. At times, governments also give support to promote production of certain types of goods, such as those which are environmentally friendly. Discuss whether these are fair or not.

Global & Ind Econ

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Answer

Supporting the production of environment friendly goods, such as renewable energy technologies or eco-friendly products, can contribute positively to environmental sustainability. From an environmental standpoint, these measures are essential for promoting sustainable practices and reducing the carbon footprint. Encouraging cleaner alternatives benefits society as a whole by mitigating climate change and preserving natural resources. But government support for environment-friendly goods can also have implications for international trade. If subsidies or incentives are deemed to distort markets or provide unfair advantages, then such practices are not fair. These practices should be challenged and corrected through trade agreements.

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