Trade policies to reduce imports and boost current account surplus

Steps:

• Current account surplus reflects exports exceeding imports in the balance of payments.
• To increase surplus, policies must curb imports or promote exports.
• Import tariffs raise foreign goods' prices, lowering import demand.
• Option B directly achieves this by restricting imports.

Why B is correct:

• Tariffs increase import costs, reducing import volume and widening the trade balance surplus per balance of payments accounting.

Why the others are wrong:

• A: Abolishing quotas eases import restrictions, raising imports and shrinking surplus.
• C: Removing subsidies cuts export incentives, decreasing exports and surplus.
• D: Taxing producers hikes export costs, reducing exports and surplus.

Final answer: B