Which of the following is true about export promotion?
A) Export promotion is based on the infant industry argument.
B) Export promotion requires more government intervention in the form of tariffs and quotas.
C) Export promotion boosts domestic efficiency.
D) Export promotion results in the replacement of low-cost foreign goods with high-cost domestic goods.
E) Export promotion results in a decrease in the per capita GDP of a country.

Question

Quizplus · Accepted Answer

Export promotion aims to increase the country's exports, which can lead to an increase in the competitiveness of domestic industries, which in turn can boost domestic efficiency. This can lead to an increase in the country's economic growth and its Gross Domestic Product (GDP). Therefore, option C is the correct answer as it correctly identifies one of the benefits of export promotion. Options A, B, and D are incorrect as they either incorrectly state or do not relate to the concept of export promotion. Option E is incorrect as export promotion can result in an increase in per capita GDP, not a decrease.

Which of the Following Is True About Export Promotion