Developing-country governments tried to enhance incentives even further by offering greater benefits to firms that managed to increase exports. For instance, because foreign exchange was scarce in the early days of growth, imports were severely restricted. Successful exporters were, however, given licenses to import, and the prospect of making money by selling these licenses gave them strong incentives to expand their foreign market share. In situations where foreign countries imposed import quotas, or where raw materials were scarce, the government also allocated a greater share of these to
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incentivize the enterprises that grow exports, e.g. by constraining imports but giving more access to import quota to those growing exports. if they bring in their own foreign currency they can use that themselves. sets up good incentive to be efficient and improve trade (im)balance.
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