Advantages of full capital account convertibility - General Economics & Indian Economy

Q.  Which of the following is not an advantage of full capital account convertibility?
- Published on 04 Apr 15

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

ANSWER: Encourages import
 
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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