Final answer:
An export subsidy has the opposite effect of a tariff, as it promotes exports by reducing costs for domestic producers rather than increasing costs of imports. The correct answer is option: a. a tariff.
Step-by-step explanation:
An export subsidy is intended to encourage domestic companies to export goods by providing financial assistance, thus reducing the cost for producers who are exporting. This policy measure would typically have the opposite effect of a tariff, which imposes a tax on imports to protect domestic industries by making imported goods more expensive and less competitive in the domestic market. An export subsidy can increase a country's exports and improve its trade balance by making its goods cheaper for foreign buyers.
The subject you're asking about is related to the effects of fiscal policy on the trade balance. In terms of government budget deficits, these can lead to higher demand for financial capital, possibly drawing in foreign capital and potentially leading to a trade deficit. In contrast, an export subsidy aims to boost exports and could potentially lead to a trade surplus, or at least reduce a trade deficit. Of the choices provided, an export subsidy has the opposite effect of capital flight, which pertains to the rapid outflow of financial capital from a country due to economic or political instability.