One of the physical measures that can be used to reduce the volume of imports is the

Step 1: Analyze the question The question asks for a physical measure that reduces imports. In international trade, measures to restrict imports are grouped into:

• Tariff (price) measures: import duties, taxes
• Non-tariff (physical) measures: quotas, embargoes, import licensing, foreign exchange control

Step 2: Explain the concept Physical (direct) controls limit the quantity or availability of imports directly, rather than working through prices. Examples include:

• Quotas, which cap the quantity of a good that can be imported
• Embargoes or outright bans
• Import licensing
• Foreign exchange control, where the government rations the foreign currency available to importers. Without foreign exchange, importers cannot pay for foreign goods.

Step 3: Evaluate each option

• A. Reduction of personal income tax: This raises disposable income, so people can buy more, including imports. It is a fiscal measure and would likely increase imports.
• B. Removal of import duties: This makes imports cheaper and increases their volume. It is the opposite of what is needed.
• C. Use of foreign exchange control: This restricts the supply of foreign currency to importers, directly limiting how much can be imported. It is a physical (non-price) measure, so this fits.
• D. Liberalization of credit for importers: Easier credit makes importing easier and increases imports.

Step 4: Answer The correct option is C, use of foreign exchange control.

Step 5: Exam tip Remember: "Q-E-L-F" are the physical controls: Quotas, Embargoes, Licensing, Foreign exchange control. Tariffs and duties are price measures, not physical ones. Also, any option that makes imports cheaper or easier (tax cuts, duty removal, easy credit) will increase imports, so you can eliminate those quickly.