Which of the following measures can lead to an increase in exports?

A. Increase in export duties
B. Increase in excise duties
C. Depreciation of currency
D. Total ban on imports

Correct Answer:

Option C – Depreciation of currency

Explanation

The economic effect is thus, depreciation of currency tends to increase a country’s balance of trade ( exports minus imports) by improving the competitiveness of domestic goods in foreign markets while making foreign goods less competitive in the domestic market by becoming more expensive.