Which of the following measures can lead to an increase in exports?
ECONOMICS
WAEC 2022
Which of the following measures can lead to an increase in exports?
- A. Increase in export duties
- B. Increase in excise duties
- C. Depreciation of currency
- D. Total ban on imports
Correct Answer: C. Depreciation of currency
Explanation
The economic effect is thus, depreciation of currency tends to increase a country's balance of trade ( exports minus imports) by improving the competitiveness of domestic goods in foreign markets while making foreign goods less competitive in the domestic market by becoming more expensive.
Post an Explanation Or Report an Error
If you see any wrong question or answer, please leave a comment below and we'll take a look. If you doubt why the selected answer is correct or need additional more details? Please drop a comment or Contact us directly. Your email address will not be published. Required fields are marked *