A set of measures, including fiscal and commercial support and the removal of trade barriers, taken by a government to increase the sale of its goods abroad, with a view to higher economic growth and more foreign exchange earnings, is called:
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → export promotion
Export promotion is a set of measures taken by a government to promote exports, for higher growth and more foreign exchange earnings. It includes fiscal and commercial support and removal of trade barriers.
Import substitution replaces imports with home production. Export duties are taxes on exports, and quantitative restrictions are quotas on imports.
NCERT (2026-27): Glossary: “Export Promotion – A set of measures (including fiscal and commercial support measures and steps aimed at removal of trade barriers) taken by a government to promote the export of goods with a view to achieve higher economic growth and accumulation of foreign exchange earnings.” Glossary: “Export Duties – Taxes imposed on goods exported from a country.” Glossary: “Quantitative Restrictions – Restrictions in the form of total quantities or quotas imposed on imports to reduce balance of payments (BOP) deficit and protect domestic industry.” |