According to "the great non-debate over international sweatshops" by ian maitland, an export oriented policy is vital in countries that are starting on the industrialization path and have large surpluses of cheap labor.
(a) true
(b) false

The correct answer is True.

Explanation:

Foreign trade policy can grant powerful incentives or disincentives to production, through its influence on prices and quantities of competing products imported into the country and through its effects on domestic prices received for exports. It is said that policies that increase prices of imports in the domestic market provide economic protection. The main instruments of trade policy are tariffs and fees on the side of imports, and various types of incentives when it comes to exports. In some cases a combination of quotas and tariffs (known as "tariff quotas") is used, according to which tariffs are increased when imports exceed a set amount.

The benefits derived from the increase in international trade mean that developing countries have an interest in promoting it and ensuring that international trade standards are fair. However, since the conclusion of the Uruguay Round, developed countries have increased their exports more than developing countries, and concerns have been raised about the continuation of agricultural protection measures in developed countries. Issues of this nature feature prominently in this round of negotiations on international trade.

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the answer is d

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