Which of the following measures can lead to an increase in exports?

1. Analyze the question We need the measure that would make a country's exports increase.

2. Concept Exports rise when a country's goods become cheaper or more attractive to foreign buyers, or when producers are encouraged to sell abroad.

3. Evaluate each option

• A. Increase in export duties: An export duty is a tax on goods leaving the country. It raises the cost of exporting and discourages exports. ❌
• B. Increase in excise duties: Excise duties are taxes on goods produced locally. They raise production costs and prices, which makes exports less competitive. ❌
• C. Depreciation of currency: When the naira depreciates, it loses value against foreign currencies. Nigerian goods then cost less in foreign currency terms, so foreign buyers demand more of them and exports tend to increase. ✅ Example: If ₦1,000 = $1 and the naira depreciates to ₦1,500 =$1, a product priced at ₦15,000 falls from $15 to$10 for a foreign buyer. Cheaper price, higher demand.
• D. Total ban on imports: This restricts imports, not exports. It may even provoke retaliation from trading partners and reduce exports. ❌

4. Answer The correct option is C. Depreciation of currency.

5. Exam tip Remember: Depreciation makes Exports cheaper and Imports costlier. Taxes on exports, such as export duties, discourage exports. Questions on "what increases exports" usually point to a weaker currency, export subsidies, or export promotion incentives.