Which of the following is the most appropriate cause of export surplus? A. Country’s exports promotion value B. Country’s stringent import policy C. Developments in national and international markets D. None of the above

Country's exports promotion value
Country's stringent import policy
Developments in national and international markets
None of the above

The correct answer is: C. Developments in national and international markets

An export surplus is a situation in which a country exports more goods and services than it imports. This can happen for a number of reasons, including:

  • A country may have a comparative advantage in the production of certain goods or services. This means that it can produce those goods or services more efficiently than other countries.
  • A country may have a strong currency, which makes its exports more competitive in international markets.
  • A country may have a favorable trade policy, which makes it easier for businesses to export their goods and services.
  • Developments in national and international markets can also lead to an export surplus. For example, if there is a sudden increase in demand for a country’s exports, this can lead to an increase in exports and a decrease in imports.

Option A, Country’s exports promotion value, is not the most appropriate cause of export surplus. While a country’s exports promotion value can certainly contribute to an export surplus, it is not the only factor that determines whether or not a country will have a surplus.

Option B, Country’s stringent import policy, is also not the most appropriate cause of export surplus. While a country’s import policy can certainly affect the amount of goods and services that it imports, it is not the only factor that determines whether or not a country will have a surplus.

Option D, None of the above, is also not the correct answer. As explained above, there are a number of factors that can contribute to an export surplus, including developments in national and international markets.

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