Explain how each of the following government policies encouraged business development: railroad subsidies; tariffs.

Question

I don't really know about how railroad subsidies encouraged business development.
For tariffs, I got this: tariffs were necessary to protect domestic industries from foreign competition.
Please check if I'm correct and give me some ideas about how railroad subsidies encouraged business development.
Thanks a lot!

Answer 1

Subsidies are money provided by the government. When the government granted the railroads substantial subsidies, the railroads were able to expand and charge minimal amounts to their customers. Therefore, farmers and manufacturers could ship their products fairly cheaply all over the country. This gave them more customers and helped them grow.