Question

Lowering of Import / Export Duty Rates, as part of the External Sector Reforms in 1991, relates to -

• A. Exchange Rate Stabilisation
• B. Rationalisation of Tariff Structure
• C. Quantitative Restrictions
• D. Foreign Direct Investment

Answer 1

Answer: (B)

Rationalisation of Tariff Structure

As a part of globalization, the import rates and export duty rates were to be decreased so that there would be fair flow of goods between the domestic country and other countries as a result of which there will be rationalization of tariff structure.