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Get access to the detailed solutions to the previous years questions asked in IIFT exam
In the paragraph 1, the author has explained that "Exporting simple manufactured goods not only increases income and consumption at home, it generates foreign revenues that allow the country to import the machinery and materials needed to improve its factories without running up huge foreign bills and debts". Hence, we can say that growth in manufacturing exports leads to an increase in foreign investment, domestic income generation and consumption. Therefore, option B is the correct answer