Some nations with weak balance-of-payment positions issue an import license on the condition that the goods move on an aircraft or vessel flying that nation's flag.

Question

Quizplus · Accepted Answer

This is known as a flag discrimination policy and is often used by countries with weak balance-of-payment positions to promote their domestic shipping and airline industries. By requiring goods to be transported on their own flagged vessels or aircraft, they can reduce their outflows of foreign exchange and support their own industries.

Some Nations with Weak Balance-Of-Payment Positions Issue an Import License