December 2020
Intermediate to advanced
857 pages
42h 3m
English
Content preview from Business Environment, 4th Edition by Pearson
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Foreign Trade Policy and Balance of Payments | 241
The trade policy assumed
that a lasting solution
to the BoP problem lies
in the promotion and
diversification of our export
trade.
controls, reducing export duties, abolishing export quotas, and providing incentives
to exports. Liberalization led to a tremendous increase in our imports, but exports
did not rise appreciably. Consequently, there was a fast deterioration in our foreign
exchange reserves (FERs). This necessitated a reversal of trade policy.
During the third phase, which began in 1956–57, the trade policy was re-oriented
to meet the requirements of the planned economic development. ...
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