Theory question 102
Foreign TradeCommerce 2 (answer five questions)
Describe five measures each which government may take to: (a) restrict imports (b) promote exports.
Show the model answer
(a) Restrict imports (any five): tariffs/customs duties to make imports dearer; import quotas limiting quantities; outright bans/embargoes; import licences; exchange control limiting foreign currency for imports; devaluation of the currency; advance deposits on imports; encouraging local production of substitutes.
(b) Promote exports (any five): export incentives, subsidies and tax relief; export credit and credit guarantee schemes; removal or reduction of export duties; export promotion council (NEPC) giving information and training; trade fairs, exhibitions and trade missions abroad; improving quality and standards of export goods; trade agreements with other countries; export processing zones; devaluation making exports cheaper.
Five clearly described measures on each side.