Answer to Question #177919 in Macroeconomics for Mayur Patel

Question

If you are a business in Ontario, it is possible to get a grant of up to $30,000 or 50% of costs related to growing your export market. For example, attending international trade shows, or creating a marketing plan for a new market. This funding comes from an annually reviewed and funded program to support exporters. Do you think this is a fair or an unfair trading practice? Explain.

Answer 1

It is a fair trading practice. The grants will help individuals and firms to build knowledge and experience vital for successful foreign market involvement. The grants will also place risks and opportunities of foreign investment into perspective.