Trade strategies used to achieve economic growth and development:
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Disadvantages:
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Export promotion:
Economic integration:
Developing countries have been involved in many preferential access schemes and regional free-trade agreements
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Market based policies impact economic growth and development:
Trade liberalisation: removal of trade barriers that block the free trade of goods and services between countries
Privatisation: sale of public government-owned firms to the private sector
Deregulation: governments have placed many regulations on the operations of businesses which increases cost of production and reducing output in the economy
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Social enterprises and economic development:
Social enterprises: are organisations that have specific social objects as their primary goal
When externalities in the free market result in less efficiency private benefits/costs which are not equal to social benefit/costs
May be non-profit, profit is a secondary goal
These enterprises promote economic development by overcoming local and global issued
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How can institutional change impact economic growth?
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Increasing women’s empowerment
Empowerment is the process by which women gain power and control over their own lives and have the ability to make strategic changes/choices
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Reducing corruption
Reform institutions
Build professional civil service
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Promote secure property rights and land tenure rights
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How can transfer payments impact economic development:
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Role of minimum wage in promoting economic development:
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Merit goods: provide many external benefit
Development aid: is given by governments and nonprofit organisations to alleviate systemic poverty and promote the social, environmental or political development in recipient countries
Humanitarian aid: is given to save lives and alleviate suffering in response to emergencies such as natural or human made cruises
Non-governmental organisations: have a major role in promoting economic growth and economic development
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