Subsidies
A subsidy is a form of financial aid paid to a business or economic sector. Most subsidies are made by the government to manufacturers or distributors in an industry to prevent the industry's deterioration or a rise in product prices or simply to encourage it to hire more employees. Other examples are subsidies to encourage export sales; subsidies on some foods to sustain the cost of living, especially in urban areas; and subsidies to encourage the expansion of plantation production and to make improvements in self-sufficiency in food production. Subsidies can be regarded as a form of protection understanding or trade barrier by making domestic goods and services competitively manufactured against imports. Subsidies may disrupt the market, and may impose large economic costs. Financial assistance in the form of subsidies may come from the government, but subsidies may refer to assistance by others, such as individuals or non-governmental institutions.