explain briefly the different incentives for export trade
Answers
Export trade is an important component of country's economic growth as it generates foreign reserve in international market and contributes to the national output of the country.There are many incentives for export trade such as administrative regulations, legal,tax relief,monetary and so on.
Explanation:
Export incentives are some of the ways to strengthen the export sector of the country as it helps generate foreign reserve,company/firms sales,employment and gross output.Higher exports can also enable reduction of Current Account Deficit and encourage domestic business to expand production thereby mobilizing the economy.In this regard, government can undertake various administrative measures to promote export of various goods and services,which commonly include subsidies or direct payment for the export sectors,which means financial assistance for the firms to increase production level that could be exported in international market,low cost loans to serve the same purpose as subsidies or direct payments,profit tax exemptions/relief for companies to encourage them to mobilize their factors of production and increase production level accordingly.