I. 🍃Introduction
- Definition of current account deficit
- Importance of reducing current account deficit

II. Advantages of government subsidies in reducing current account deficit
- Lower costs of production
- Lower prices, making products more internationally competitive
- Increase in export revenue
- Decrease in import expenditure

III. Disadvantages of government subsidies in reducing current account deficit
- Firms may not lower prices
- Firms may be encouraged to be inefficient
- Demand for exports may not rise if quality is poor
- Demand for exports and imports may be price-inelastic
- Other countries may retaliate by imposing trade restrictions/giving subsidies
- Subsidies to consumers can increase demand for imports and divert exports to the home market
- Subsidies to producers may increase demand for imports of raw materials and capital goods

IV. Case study: Effectiveness of government subsidies in reducing current account deficit in a specific country
- Analysis of the impact of government subsidies on the current account deficit
- Evaluation of the effectiveness of government subsidies in reducing the current account deficit

V. 👉Conclusion
- Summary of the advantages and disadvantages of government subsidies in reducing current account deficit
- Recommendations for policy makers to effectively reduce current account deficit.