Final answer:
Subsidies are a government program that supports exports by providing financial assistance to help domestic companies compete internationally. While trade barriers like tariffs and quotas protect domestic industries, subsidies encourage exports by making them more economical to produce and sell overseas.
Step-by-step explanation:
Among the government programs that support exports, subsidies are one of the primary methods used. A subsidy is a form of financial aid or support extended to an economic sector (or institution, business, or individual) generally with the aim of promoting economic and social policy. By providing subsidies, a government can encourage local companies to export goods, as the cost of production can be reduced, allowing those companies to offer their products at competitive prices in international markets.
Trade barriers, on the other hand, including tariffs, quotas, preferential tariffs, and technical regulations, are typically designed to protect domestic industries from foreign competition by making imported goods less competitive. Tariffs impose a tax on imported goods, thus raising their price. Quotas limit the quantity of a particular good that can be imported. Preferential tariffs are reduced rates applied to imports from certain countries, and technical regulations are standards that goods have to meet to be eligible for import.
When a government uses such protectionist policies, it can sometimes be at odds with the principles of free trade promoted by organizations such as the World Trade Organization (WTO), which seeks to reduce barriers to trade globally.