Business Environment by Pearson

CHAPTER OUTLINE

FOREIGN TRADE POLICY AND BALANCE OF

PAYMENTS

Advanced countries like Germany, the United States, Japan, and others have used their trade

policy to (a) restrict their imports and provide a sheltered market for their own industries so that

they could develop rapidly and (b) promote their exports so that their expanding industries could

secure foreign markets. In other words, trade policy has played a signi cant role in the develop-

ment of the advanced countries. India, however, did not have a clear trade policy before inde-

pendence, though some type of import restriction—known as discriminating protection—was

adopted since 1923 ...