Direct Measures to Boost International Trade

Steps:

• Define international trade promotion as policies that reduce barriers or incentives for cross-border exchanges.
• Evaluate each option for direct impact on imports/exports versus indirect economic effects.
• Eliminate options focused on domestic stimulus or internal markets.
• Select the option that explicitly lowers trade restrictions.

Why C is correct:

• Decreasing quotas directly expands import allowances, per trade theory, increasing market access and trade volume without distorting prices.

Why the others are wrong:

• A: Decreases interest rates stimulate domestic borrowing and investment, indirectly affecting trade via currency values.
• B: Export subsidies boost competitiveness but violate WTO rules as unfair trade practices, not direct promotion.
• D: Wage subsidies during recessions support employment and consumption internally, with minimal direct trade impact.

Final answer: C