[amp_mcq option1=”Promoting import substitution” option2=”Emphasis on exports” option3=”High octroi on imports” option4=”Devaluation of money” correct=”option1″]<\/p>\n
The correct answer is: A. Promoting import substitution<\/strong>.<\/p>\n Import substitution is a trade policy that aims to reduce a country’s reliance on imported goods and services by developing domestic production of those goods and services. This can be done through a variety of measures, such as tariffs, quotas, and subsidies.<\/p>\n Import substitution can be a successful way to improve a country’s balance of payments. When a country reduces its imports, it also reduces its outflow of foreign currency. This can help to improve the country’s trade balance and its overall balance of payments.<\/p>\n However, import substitution can also have some negative consequences. It can lead to higher prices for consumers, as domestic producers may not be able to produce goods and services as efficiently as foreign producers. It can also lead to a loss of competitiveness in the global market, as domestic producers may not be able to compete with foreign producers on price or quality.<\/p>\n Overall, import substitution can be a successful way to improve a country’s balance of payments. However, it is important to weigh the potential benefits and costs of import substitution before implementing it.<\/p>\n Here is a brief explanation of each option:<\/p>\n [amp_mcq option1=”Promoting import substitution” option2=”Emphasis on exports” option3=”High octroi on imports” option4=”Devaluation of money” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[],"class_list":["post-50585","post","type-post","status-publish","format-standard","hentry","category-economics","no-featured-image-padding"],"yoast_head":"\n\n