Question
State measures that can be taken to reduce unfavorable balance of trade.
Answer
- Restricting importation of luxury items through taxation.
- Encouraging the development of Jua kali industries which do not require importation of heavy machinery.
- Establishing import substitution industries to cut down on importation of some commodities.
- Development of alternative sources of energy to reduce importation of petroleum fuels.
- Diversification of agricultural export base to enable the country to have a variety of exports.
- Opening of new markets to avoid dependence on the traditional trading partners.
- Encourage production of high-quality manufactured goods for export.
- Protection of local industries to enable them to produce for local consumption hence cut down importation of some commodities.
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