Final answer:
An export subsidy differs from a tariff in beneficiaries, impact on domestic consumers, government revenue, and trade distortion.
Step-by-step explanation:
An export subsidy differs from a tariff in four ways:
Beneficiaries: An export subsidy benefits the exporters of a country, while a tariff benefits the domestic producers by raising the price of imported goods.
Impact on domestic consumers: An export subsidy does not directly impact domestic consumers, while a tariff raises the price of imported goods, causing domestic consumers to pay more.
Government revenue: An export subsidy leads to a loss of government revenue, as it involves providing financial assistance to the exporters. On the other hand, a tariff generates government revenue through import duties.
Trade distortion: An export subsidy may distort international trade by encouraging overproduction and reducing market efficiency. Tariffs, on the other hand, protect domestic industries by reducing competition from foreign producers.