A country's department of trade and commerce decides to regulate imports from a neighboring country in order to curb the exit of large amounts of domestic capital.This is an example of a(n)_____.

Question

Quizplus · Accepted Answer

Exchange control is a governmental restriction on the trade of currencies, which can include measures to prevent large amounts of domestic capital from leaving the country. This can be used to regulate imports by controlling how much foreign currency is available for purchasing foreign goods, thereby indirectly controlling the amount of imports.

A Country's Department of Trade and Commerce Decides to Regulate