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Explain five measures that the government may take to improve the volume of exports

      

Explain five measures that the government may take to improve the volume of exports

  

Answers


Davis
i) Creation of export processing zones- Where the producers/exporters enjoy a Variety of inceptives/accept e.g. of investors as explanation.
ii) Manufacturing under bond to encourage local manufacturers to produce exclusive
for export.
iii) Export compensation schemes/ subsides schemes by refunding a specific % age of value of
goods/services exported/meeting part of the cost of production for exports.
iv) Providing information on international markets through publications/seminars/workshops/educational
tours
v) Financing those producing for exports by availing credit/loan to exporters.
vi.) Participating in international trade fairs/exhibitions/shows to expose the exporters
their goods/services
vii) Use of commercial attaches/other government agencies to promote
exports/advertise/look for markets for exports.
ix) Customs drawbacks by refunding tax on imported ran materials used to produce exports.
x) Devaluation of currency to make exports cheaper/increased demand
xi) Improved infrastructure to facilitate export production/export trade/accept eggs of infrastructure as a
mentioned
xii) Entering into trade agreement/blocks/integration/groupings/cooperation to give preferential treatment
to a cooling exports
xiii) Improving on quality/standardization/packaging to make exports more attractive
Export credit guarantee scheme to insure/ compensate exporters against risks when selling overseas.
xiv) Export credit guarantee scheme to insure/compensate exporters against risks when
selling overseas.
xv) Tax rebates/ lowering of duties on exports/reduction of taxes on inputs used to produce goods for export to make them cheaper/increase their demand/to reduce cost of production.
xvi) Improve /adopt modern technology in order to increase the volume of goods for
exports.

OR

i. Providing export subsidy thus making it cheaper for exporter
ii. Looking for more markets abroad through Kenya external trade authority (KETA) enabling more to
be exported.
iii. Organizing fairs and exhibitions in foreign countries to create awareness
iv. Exports credit guarantee schemes to compensate exporters against the risk that may arise from
selling goods abroad
v. By establishing processing zones,(EPZs which enhance more exports
vi. By entering into bilateral trade agreement with other partners to improve their terms of trade
vii. Diversifying her exports commodities for market security/cushions slump in demamnd
viii. Control drawback-reinforcing customs duty on imported raw materials used in the production of goods meant for export.

OR

a.) Export compensation scheme
Under this scheme, the exporter is allowed to claim from the government a certain percentage of the value of the products exported. This will enable the exporter to charge less hence increasing the demand for the product in the world market.
b.) Help given to exporters by the government departments
The government departments such as the departments of foreign affairs or trade and industry may give useful information about the world market and also negotiate with other countries to secure preferential treatment for their country’s exports.
c.) Customer drawbacks
The government may refund either in full or in part the custom duty paid when importing raw materials for the manufacture of finished products if they are exported. The refund is called draw backs.
Githiari answered the question on September 23, 2017 at 09:10


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