Question

Which of the following statements is correct with regard to external sector in the post-reform period?

• A. Quantitative restrictions have been imposed on a number of tradable items.
• B. Quantitative restrictions have been removed on most of the items, except a few goods.
• C. The tariff obstacles have been further raised. Foreign investment is now being discouraged.
• D. All of the above.

Answer 1

The correct option is B Quantitative restrictions have been removed on most of the items, except a few goods.

With the regard to external sector in the post reform period the correct statement is that quantitative restrictions(QRs) have been removed on most of the items except a few sensitive items. Also, foreign investment is now liberalized and encouraged with FDI.