Question on: JAMB Economics - 2024
The following can be used to improve a country's balance of payment EXCEPT
anti-dumping policies
granting subsidies to export producers
decreasing taxation on personal income
increasing import duties
The balance of payments records all financial transactions between a country and the rest of the world. Policies that increase exports or decrease imports improve the balance of payments.
A. Anti-dumping policies: These policies restrict imports that are sold at unfairly low prices, thus improving the balance of payments.
B. Granting subsidies to export producers: This makes exports cheaper and more competitive, thereby increasing exports and improving the balance of payments.
C. Decreasing taxation on personal income: This increases disposable income, which can lead to increased spending on imports, thus worsening the balance of payments.
D. Increasing import duties: This makes imports more expensive, reducing imports and thus improving the balance of payments.
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