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TeachMeFinance.com - explain Subsidy Subsidy -- An economic benefit, direct or indirect, granted by a government to domestic producers of goods or services, often to strengthen their competitive position against foreign companies. another definition... Subsidy -- A grant paid by a government to producers or exporters of goods to strengthen their competitive position. historic definition... Subsidy -- Pecuniary aid granted by a government to an enterprise deemed productive of public benefit. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.