Question

Discuss any two export promotion measures undertaken to correct the disequilibrium in the Balance of Payments.

Answer 1

The following are the two export promotion measures that can be undertaken to correct the disequilibrium in the Balance of Payments:

1. Import Restrictions: The first step is to limit unnecessary imports. This can be accomplished by blocking the import of certain non-essential commodities entirely or by enforcing import restrictions and raising extremely high import taxes on non-essential goods imports.
2. Export Promotions: The second way of addressing disequilibrium. The BOP seeks to boost export volumes. This can be accomplished by granting various export incentives, supporting manufacturers, providing financial and non-financial assistance to industries to improve their export competitiveness, or encouraging import substitution.