Question

In the pre-reforms period (i.e. before 1991), Export Subsidy Schemes were characterised by:

• A. High transaction costs
• B. Delays
• C. Corruption
• D. All of the above

Answer 1

The correct option is D All of the above

India adopted socialist form of economy which involved a lot of government intervention into international trade where government used to offer export subsidies backed with transaction costs, delays and corruption so that only a few government selected companies could complete in the international market.