The policy by which government encourages producers of export goods to produce and export more in order to earn more foreign exchange is called__________

  • A Sales promotion
  • B Term of trade
  • C Export promotion
  • D International trade

The correct answer is C. Export promotion

Export promotion also called export drive is defined as any policy by which government encourages producers of export goods to produce and export more in order to earn more foreign exchange. Such measures include: reduction of export duties, subsidy for export based industries etc.

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