A. make imported goods affordable
B. reduce domestic unemployment
C. encourage the importation of non-essential goods
D. make a country enjoy an absolute advantage in the production of all goods

Correct Answer:

Option D – make a country enjoy an absolute advantage in the production of all goods

Explanation

Commercial policy may be defined as one that helps in accelarating the rate of economic development. by enabling the under-developed country to have larger share of the gains from trade, by augmenting the rate of capital formation and by promoting industrialization and maintaining equilibrium in the balance of payments.

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