Capital Account Convertibility - GS questions based on daily current affairs

1)   Which of the following is not an advantage of full capital account convertibility?

a. Encourages import
b. Boosts exports
c. Easy access to forex
d. Promotes trade and capital flows between nations
Answer  Explanation 

ANSWER: Encourages import

Explanation:
Imports become expensive and results in import substitution. Import substitution industrialization is a trade and economic policy which advocates replacing foreign imports with domestic production.

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