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Why do state approaches work into promoting development?
State planning and intervention is desirable due to the shortcomings of markets. The approaches range of state through planned economies by government setting outputs and prices.
Economic policy intends to protect domestic industry and encourage economic development through
• Heavy tariff barriers and a hostility to foreign direct investment to defend the home market for local firm’s for example
a. Limiting imports by quotas (limits onto the amount of imports permitted in a country)
b. High tariffs (taxes onto imports).
• High fixed swap over controls (high $/£) to create imports relatively inexpensive and exports relatively expensive
• State marketing boards purchase the output of tiny private sector farmers at well below world prices and utilize the foreign currency gain through profits to fund investment. There is low prices distort markets.
(a) Name three types of government interventions and 3 economic factors affecting the business environment and with given example explain how these affect the business environment.
a) $130,000 b) Project Atlanta has the shorter payback period Atlanta Boston Payback 1 year and 10 months 2 years an
need help how to write a introduction for the assignment of business environment
Why might the point at which the long-run average cost curve levels out change over long periods of time? include a diagram.
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what factors deter the sale of a product
Explain critics of the International Monetary Fund argue. Critics of the International Monetary Fund (IMF) argue: • The IMF is suffering through mission creep and requiremen
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