DEFINITION of 'Export Incentives'
Monetary, tax or legal incentives designed to encourage businesses to export certain types of goods or services. A government providing export incentives often does so in order to keep domestic products competitive in the global market. Types of export incentives include tax exemption on profits made from exports.
BREAKING DOWN 'Export Incentives'
Export incentives make domestic exports competitive by providing a sort of kickback to the exporter. The government collects less tax in order to deflate the exported good's price, so the increased competitiveness of the product in the global market ensures that domestic goods have a wider reach. This level of government involvement can also lead to international disputes that may be settled by the World Trade Organization (WTO).