Concept:Export promotion is a deliberate government policy that encourages local producers to export more goods and services.
The main target of this policy is to increase foreign exchange earnings through higher exports.
Explanation:The government provides incentives to make export trade attractive to domestic producers.
Such incentives include reduction of export duties, provision of subsidies to export-based industries, and the establishment of export processing zones.
These steps reduce the cost of production and make locally made goods competitive in the international market.
With better incentives and support, producers are motivated to expand output and sell more to other countries.
When more goods are exported, the country earns more foreign exchange, which strengthens its external reserves.
This type of policy is commonly known as export promotion or an export drive.
It is not merely a sales promotion activity, and it is different from international trade in general or the terms of trade.
Rather, it focuses specifically on boosting the volume and value of exports.
Answer:C. Export promotion