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Question : Which of the following is not a type of export promotion?

Option 1: Subsidies

Option 2: Tariffs

Option 3: Tax incentives

Option 4: Trade missions


Team Careers360 6th Jan, 2024
Answer (1)
Team Careers360 19th Jan, 2024

Correct Answer: Tariffs


Solution : The correct answer is (b) Tariffs.

Tariffs are trade barriers imposed on imports, not export promotion measures. Tariffs increase the cost of imported goods, making them less competitive in the domestic market. Export promotion, on the other hand, refers to policies and measures aimed at enhancing a country's exports. Subsidies, tax incentives, and trade missions are examples of export promotion strategies. Subsidies provide financial assistance to domestic exporters, tax incentives offer tax breaks or exemptions for export-related activities, and trade missions involve sending business delegations to foreign markets to explore export opportunities.

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