Approaches for developing the economy

Question 1

Trade liberalisation and export orientation?

Answer 1

Countries have adopted export orientation – increase in the production and export of goods in which they possess comparative advantage – in order to raise the level of the economy. They also open their markets for inflow of foreign goods or promote free trade.

Question 2

Some advantages of trade liberalization and export orientation?

Answer 2

In developing countries it is expected to enhance product development and enable firms to compete globally.
The opening up of the economy and focusing on exports encourages innovation and facilitates transfer of skills and technology enhancement
East Asian economies (Japan, Hong Kong, Singapore, South Korea) experienced rapid economic development based on export-led growth and liberalization of the economy.
They increased their share of world trade by exporting manufactured goods, including telecommunication equipment, computers and robotics

Question 3

Tourism?

Answer 3

Tourism involves the movement of people from one place to another within or across borders. People travel for the purpose of leisure, business, health or visiting relatives.

Such travel has grown rapidly in an increasingly globalized world, where transportation is relatively cheap, and where borders are becoming blurred.
In many countries and continents the rapid growth of tourism has made a significant contribution to the growth of the economy.

Question 4

Entrepreneurship?

Answer 4

Entrepreneurship refers to the process by which an individual or a group of people make an attempt to convert an idea into a business or economic activity

Entrepreneurship can help spur the economy by creating jobs and making good use of capital from investors. The products and services made by a successful entrepreneur add to the GDP of the country, and help bring in foreign exchange if such products are exported

These factors can coalesce to create and support strong entrepreneurial ventures, which in turn can boost economic development.

Question 5

Circular economy?

Answer 5

A circular economy is a system devised to ensure that the production process allows for the recycling of material and products.

Such an economy attempts to make products out of secondary raw materials and use waste purposefully. This model is expected to spur development, create employment, encourage innovation in eco-friendly industries and also safeguard the environment.

This places the concept of circular economy in harmony with the concept of sustainable development.