Question

what is the historical significance of subsidization

Answer 1

Subsidies are often intended to help industries to grow and develop or protect them from troubles. Subsidies are essentially financial grants to corporations from the government that enable them to invest more money in things like research and development. Subsidies help industries grow and strengthen so they can compete in the global market or protect industries from foreign competition or domestic troubles, which can save jobs. Either way, subsidies give corporations in a particular industry funds that they can use to invest in better productivity. Think of it as a loan from the government that does not have to be repaid and occurs every year for a set number of years, or like a financial umbrella from the rain that is economic competition or challenging factors :source http://answers.yahoo.com/question/index?qid=20120308161727AAKKOyM