Question
Download Solution PDFAssertion (A): Foreign trade policy is an important instrument that incentivises the exporters of the country.
Reasons (R): It is important for exporters of our country to have knowledge of foreign trade policy
Which of the following option is correct?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFForeign trade policy
- A system of rules guiding and regulating the import and export of commodities and services is known as the foreign trade policy.
- its other name is EXIM (export-import) policy.
Important Points
Assertion (A): Foreign trade policy is an important instrument that incentivizes the exporters of the country.
- In Foreign Trade Policy, various financial aid provided by the Indian government to exporters,
- It includes low-cost loans, tax breaks, subsidies, and government-funded marketing campaigns,
- Thus, it lowers their overall export costs, and they are better able to set competitive prices on the international market.
Hence, the assertion is correct that foreign trade policy supports and benefits the exports of the nation.
Reasons (R): It is important for exporters of our country to have knowledge of foreign trade policy.
- Though it is crucial for exporters to have knowledge of all benefits provided by foreign trade policies.
- This is important to achieve the objective of export promotion.
- However, the reason is true but not a valid explanation of the assertion.
Hence, the correct answer is Both (A) and (R) are correct but (R) is not the correct explanation of (A)
Last updated on Jun 6, 2025
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