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*IJMB ECONOMIC*
*NUMBER 1*
```(1A)```
International trade is the exchange of capital, goods, and services across international borders or territories because there is a need or want of goods or services. In most countries, such trade represents a significant share of gross domestic product.
*(1B)*
```(i)``` Export promotion:
Exports should be encouraged by granting various bounties to manufacturers and exporters. At the same time, imports should be discouraged by undertaking import substitution and imposing reasonable tariffs.
```(ii)``` Import:
Restrictions and Import Substitution are other measures of correcting disequilibrium.
```(iii)``` Reducing inflation:
Inflation (continuous rise in prices) discourages exports and encourages imports. Therefore, government should check inflation and lower the prices in the country.
```(iv)``` Exchange control:
Government should control foreign exchange by ordering all exporters to surrender their foreign exchange to the central bank and then ration out among licensed importers.
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