State intervention approaches for promoting development, Business Economics

Assignment Help:

Explain the state intervention approaches for promoting development.

State intervention can result within:

• Large bureaucracies staffed through friends and relatives of the ruling elite

• State rules and regulations which burden business along with paperwork and slow down decision-making. For example, registering a modern business can take a year; importing components requirements a government certificate and promotes a bribe for licence corruption.

• Price rules-regulation distorts prices resulting within a misallocation of resources

• State funding of unsuitable capital projects

• Crowding out private investment like the bulk of accessible domestic savings is assigned by the state

• No profit motive implies no risk taking resulting into minimal product development and innovation.


Related Discussions:- State intervention approaches for promoting development

What factors affect population change, What factors affect Population Chang...

What factors affect Population Change? Population growth is affected by given factors: • Births from the 1960s birth rates have declined quickly inmost LDCs except which in

What is economic development theory, What is Economic development theory? ...

What is Economic development theory? Economic development theories and models seek to describe and predict how the: • Economies may develop or not over time in excess •

Illustrate liberalise or open up trade market for promoting, Illustrate lib...

Illustrate liberalise or open up trade in market for promoting development? Liberalise or open up trade implies that: • Abandoning fixed exchange rates and elimination of re

Calculate the equilibrium price and output for each firm, Problem 1: (i...

Problem 1: (i) Assuming a Cournot duopoly where the market demand is estimated as: P = 100 - Q The marginal cost is estimated to be constant at Rs. 10 for the two fir

Foreign exchange market, Consider the following information in the internat...

Consider the following information in the international money markets:             Spot rate                       :           $0.95:€             Forward rate (one year)  :

Production possiblities curve, 1. Imagine that two countries, Richland and ...

1. Imagine that two countries, Richland and Poorland can produce just two goods, computers and coal. Assume that for a given amount of land and capital, the output of these two pro

What are the import substitution policies, What are the import substitution...

What are the import substitution policies? Import substitution policies are as follows: Need trade restrictions for example, tariffs and quotas to defend infant industr

What do you understand by the term "anthropometry"?, QUESTION 1 (a) Wha...

QUESTION 1 (a) What, according to you, are the ergonomic problems associated with the use of visual display units? Describe the measures which can be taken to eliminate these p

Demand supply, demand and supply curve for luxury goods

demand and supply curve for luxury goods

How can the savings gap be plugged, How can the savings gap be plugged? ...

How can the savings gap be plugged? Low savings are a barrier type to growth. All developing countries have low incomes therefore low savings. A savings gap can be met through

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