Why do state approaches work into promoting development, Business Economics

Assignment Help:

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.


Related Discussions:- Why do state approaches work into promoting development

How micro or microfinance credit assists in financial market, How is Micro ...

How is Micro or Microfinance credit assists in financial markets? Micro or Microfinance credit assists: • Grow businesses and raise the income of the poor • Extra income

Monopoly pricing, 1. (classical monopoly pricing) A monopolist faces a dema...

1. (classical monopoly pricing) A monopolist faces a demand curve q (p) = 100   p: (a) If its cost function is C (q) = 2q; what is the optimal level of price and quantity? (b

Calculate the maximum amount , Tri-City Industries is considering two possi...

Tri-City Industries is considering two possible capital projects. Project A requires an initial investment of $240,000 and provides cash flows before tax of $120,000 in year one, $

Terms of trade deteriorating in less developed countries, Why are the terms...

Why are the terms of trade deteriorating for Less Developed Countries? Problem: The substantial decline within real commodity prices and the deterioration into the terms of

Supply, causes of exceptional supply curve

causes of exceptional supply curve

Ethics, Discuss Morality in international context

Discuss Morality in international context

What is the capital-output ratio, What is the capital-output ratio? ...

What is the capital-output ratio? Capital-output ratio: This ratio (k) is the amount of capital required to produce £1 of Gross Domestic Product generated, every year.

Economic systems, the markert is said to be an invisible hand in the econom...

the markert is said to be an invisible hand in the economic system , how

Location, advantages of government grants

advantages of government grants

What is culture and human capital, What is culture and human capital? ...

What is culture and human capital? Human capital is the knowledge, experience and skills of employees and can be raised by investing into education, job training and health

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd