Describe five measures each which a government may take to:
(a) restrict imports
(b) promote exports.
Explanation
(a) Measure to restrict imports are:
(i) Import quota: quotas fix the maximum quantity of goods that can be imported in a year.
(ii) Foreign exchange control: Strict control of foreign exchange, restricts importation of goods.
(iii) Imposition of embargo: Importation of certain goods are banned by the government.
(iv) Import licences: Certain goods are placed on licence. These goods cannot be imported without first obtaining a licence.
(v) Tariffs: Import duty can be imposed on goods from other countries.
(b) Measures to promote exports are:
(i) Reduction of export duties.
(ii) Devaluation of local currency in order to make exports cheaper.
(iii) Establishment of new and improvement of the existing sea and airport facilities.
(iv) Offering Credit facilities to exporters.
(v) Export promotion agency will be set up to direct and encourage intending exporters.
(vi) Establishment and improvement of communication facilities.