Benefit of the government subsidy program

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The benefit of the $20-per-textbook subsidy was split evenly between buyers and sellers. However, the actual distribution of this benefit will depend on the elasticity – always be shifted toward the more inelastic side of the market. Thus, the more inelastic just as it does with a tax. The benefit of the subsidy will the » Read More

Enforceability

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For guarantees provided by an American parent for a US-based subsidiary it should be a trivial exercise to determine enforceability. Standard contracts exist and have been tested through the courts. This is more of an issue when guarantees are cross-border. A guarantee made by a US multinational corporation on behalf of a subsidiary incorporated in » Read More