What are the policies to protect industries from foreign competition?[4 marks]

2. What are the policies to protect industries   from   foreign competition?

     The following are the policies to protect industries from foreign competition.

Ø  Tariff

·        A tariff is a tax levied on imports.

·        It is synonymous with import duties or custom duties.

·        Tariffs are used for revenue and for protection

Ø  Quota

·        A fixed amount of a commodity in volume or the value allowed to be imported  into the country during a year

·        The main aim of quota is to protect home industries and to keep balance of payment in favorable position.

Ø  Exchange control

      Exchange   control means that all foreign receipts and payments in the form of foreign currencies are controlled by the government.

Ø  Subsidies

     Subsidies are the financial help given to the exporters. This encourages the exporters and reduces the price of exporting commodities price.

Ø  Embargo

    Embargo means complete ban on import of goods and services.