1. Main types of subsidies – Direct, indirect, production, and consumption subsidies provide financial or non-financial support to producers or consumers.

2. Influence on behavior – Subsidies lower prices for consumers and reduce costs for producers, increasing demand and production.

3. Arguments for/against – Subsidies can boost key industries and welfare but may waste resources, distort prices, and reduce efficiency.

4. Market distortions – They can cause overproduction, overconsumption, and keep inefficient firms in business.

5. Government decisions – Sectors are chosen based on strategic, social, economic, and political priorities.

6. Developed vs developing – Developed nations focus on advanced industries while developing ones target basic needs like food and fuel.

7. Impact on trade – Subsidies can create unfair advantages, spark trade disputes, and harm global relations.

8. Preventing abuse – Strong oversight, transparency, audits, and digital tracking help reduce corruption.

1. Governments give subsidies to firms based on industry importance, costs, public need, and employment, often through cash, tax cuts, or cheap resources.

2. Subsidies affect global trade by making domestic goods cheaper to export but can also trigger trade disputes for being unfair.

3. Consumer subsidies can benefit producers more when they raise prices or capture the benefit before it reaches the consumer.

4. Long-term subsidies can harm innovation and competitiveness by making firms dependent and less efficient, as seen with Air India or Japan’s rice farmers.

5. Subsidies are given based on public need, economic impact, social goals, environmental benefit, and global competition, decided through expert review and budget analysis.

ok some i used chatgpt and if u want ask me more