Explain the following terms: (i) import quotas; (ii) embargo; (iii) import licences; (iv) foreign exchange control. (b) Outline three ways in which exports can be promoted in a country.

a)

• i) An import quota is a government-imposed limit on the quantity of a specific good that can be imported into a country during a certain period. Its purpose is to restrict foreign competition and protect domestic industries.
• ii) An embargo is a complete ban on trade (imports and exports) with a particular country, usually for political or economic reasons. It is a severe form of trade barrier.
• iii) An import licence is a permit issued by a government to an importer, allowing them to bring specific goods into the country. It is used to control the volume and type of imports.
• iv) Foreign exchange control refers to government restrictions on the buying and selling of foreign currencies by its citizens and businesses. This is often done to manage a country's balance of payments or stabilize its currency.

b)
Three ways in which exports can be promoted in a country are:

• Providing export subsidies to domestic producers, making their goods cheaper and more competitive in international markets.
• Establishing export promotion agencies that offer market research, trade fair participation, and financial assistance to exporters.
• Negotiating free trade agreements with other countries to reduce tariffs and non-tariff barriers, making it easier for domestic goods to enter foreign markets.