Economy question from JKP Constable exam, 2024 by JKSSB
Government strategy regarding exporters and importers is called
Last updated May 13, 2026
Correct Answer:
Option A —
Commercial policy
Economic Definition
Commercial policy (also known as Trade Policy) refers to the set of rules and regulations that a government uses to manage its economic relations with other countries. This includes the strategy for both exporters and importers.
Key Tools:
Tariffs: Taxes on imported goods.
Quotas: Limits on the quantity of a good that can be imported.
Subsidies: Financial support provided to domestic exporters to make them competitive globally.
Trade Agreements: Treaties like Free Trade Agreements (FTAs) to reduce barriers.
Clarification of Other Options
Monetary Policy: Managed by the central bank (like the RBI), it controls the money supply and interest rates to manage inflation and stabilize the currency.
Fiscal Policy: Managed by the government, it involves taxation and public spending to influence the nation's economy.
Finance Policy: A broader, often less technical term used to describe the overall management of a government's or organization's financial resources and capital markets.
Why this is important for Exams
In the context of the UPSC or JKSSB exams, understanding the distinction between these policies is vital for the Indian Economy section. For example, while the Exim Policy (Export-Import Policy) is a specific type of Commercial Policy, it is distinct from the Budget (Fiscal Policy).
Answer verified by Quintessence Classes faculty — Karan Nagar, Srinagar.
