When an Indian importing firm wants to import U.K.-made products, it must first secure permission and money from the Reserve Bank of India.This type of restriction is known as a

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The restriction described in the scenario is a foreign-exchange control. This means that the Indian firm must obtain permission and funds from the Reserve Bank of India in order to exchange rupees for pounds sterling to pay for the U.K.-made products. This is a common type of trade restriction imposed by countries to manage their balance of payments and prevent capital flight.

When an Indian Importing Firm Wants to Import U