Concept:A balance of payment problem means a deficit caused by payments for imports exceeding earnings from exports.
It can be corrected by measures that increase foreign exchange inflows or reduce outflows.
Explanation:Export promotion strategies are designed to encourage domestic industries to produce goods for international markets.
This raises export earnings and improves the balance of payments.
Increasing foreign reserves is a result of correction, not a method of correction.
Increasing domestic borrowing does not directly influence the external trade gap.
Import promotion increases spending on foreign goods and worsens the deficit.
Therefore, the only effective corrective measure among the options is export promotion.
Answer:D. Export promotion strategies