which of the following is not a measure for reducing balance of payments deficits?

Analyze the question: We need the option that would NOT help reduce a balance of payments (BOP) deficit. A deficit means a country spends more on imports (and other outflows) than it earns from exports, so the aim is to raise export earnings and/or cut import spending.

Concept: Common measures to correct a BOP deficit:

• Export promotion (export drives, subsidies, adding to the range of export goods)
• Import substitution (increasing local production so people buy fewer imports)
• Import restriction (higher tariffs, quotas, import bans)
• Devaluation of the currency
• Deflationary policies (reducing demand for imports)

Step-by-step check of the options:

• A. Export drive: Increases foreign exchange earnings. This is a valid measure.
• B. Reducing tariffs: Tariffs are taxes on imports. Lowering them makes imports cheaper, so people buy more imports and import spending rises. This widens the deficit, so it is NOT a measure for reducing it.
• C. Adding to export goods: Diversifying exports raises export earnings. This is a valid measure.
• D. Increasing local production: Local goods replace imports (import substitution), reducing import bills. This is a valid measure.

Answer: The correct option is B. reducing tariffs.

Tip: For "which is NOT a measure" questions on BOP deficits, ask: "Does this increase imports or reduce exports?" If yes, it's the odd one out. Remember: to cut a deficit, raise tariffs, not lower them.