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Which of the following measures can lead to an increase in exports?

Economics
WAEC 2022

Which of the following measures can lead to an increase in exports?

  • A. Increase in export duties
  • B. Increase in excise duties
  • C. Depreciation of currency
  • D. Total ban on imports
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Correct Answer: Option C
Explanation

The economic effect is thus, depreciation of currency tends to increase a country's balance of trade ( exports minus imports) by improving the competitiveness of domestic goods in foreign markets while making foreign goods less competitive in the domestic market by becoming more expensive.


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