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sure will be about various types of export interventions by governments the first one that were going to be taking a look at is the instance when the government restricts the exports of a product through a tax now this may seem odd most people think about exports as being good things because they create jobs and hard currency earnings but in some instances governments want to restrict the amount of product that goes abroad in large part because the export opportunities raise the domestic price of this product as producers have the option of selling to foreign consumers who are willing to pay more so there are two potential goals of an export tax that wed like to discuss here the first one might be to reduce the domestic prices and these domestic prices could be to final consumers if its a final consumption good like automobiles if the exports are a product like steel the government may reduce the amount of exports through a tax in order to make it cheaper for automobile manufacture
