Synoptic Flashcards
1
Q
Micro influences on economic development
A
- A reduction in regulatory barriers lowers barriers to entry- new entrants enter the market
- Increased market entry intensifies competition among firms + improves contestability
- Greater competition drives innovation and efficiency improvements
- Increased competition leads to improved product quality
- Better quality products enhance domestic competitiveness
- Enhanced competitiveness increases exports and foreign exchange earnings, which can be used to imporve budgetary allocations on public services and welfare system
- These improvements enhance productivity levels
- Higher productivity attracts foreign investment
- Foreign investment brings advanced technology
- Advanced technology increases overall economic capacity
- Increased capacity supports sustainable development
