Definition of export promotion: Export promotion, also called export drive, may be defined as any policy by which government encourages producers of export goods to produce and export more in order to earn more foreign exchange.
Measures taken by government towards export promotion includes the following
- Reduction of export duties: Export can be promoted by reducing export duties.
- Subsidy for export-based industries:
The cost of producing export commodities by export based industries can be subsidized.
- Granting of tax incentives: Tax incentives can be given to export-based industries.
- Setting up of export promotion agencies:
Export promotion agencies to encourage exporters can
be set up, e.g. export processing zone (EPZ) in Calabar.
Retention of part of foreign exchange earned by exporters: Exporters should be allowed to retain part of the foreign exchange earned from exports.
Infrastructural development: Infrastructural facilities like seaports, airports and communication should be developed so as to facilitate or promote exportation of goods.
- Reduction of freight rate: Freight rate on exports can be reduced to encourage exports.
- Granting of credit facilities: Credit facilities can be granted or offered to exporters in order to promote export.
- Devaluation of local currency: The local currency can be devalued to make export cheaper.
- Organizing international trade fairs: International trade fairs should be organized periodically in order to attract foreign importers.