What are the different types of economic development strategy?
Economic development strategy includes monetary strategy, fiscal strategy and business or business strategies. Each strategy is generally used to solve the prescribed group of economic problems or symptoms, but some strategies fall into more than one category. The government generally uses different types of economic development strategies to deal with undesirable economic conditions, such as the undelly economy or excessive prices. Growing businesses can use some of these same strategies to solve economic development problems within business. These strategies can be carried out within a country with the government or in countries abroad that require assistance with economic adjustment.
Control of money flow can affect the economy. The monetary strategy in economic development uses monetary policy to remedy the non -functional system. The techniques used in this strategy include adjusting debt interest rates, exchange exchange rates and the price of gold.
This type of strategy may include a change in loan interest rates that would affect the inflation rate. Determination of currency control in the developing country is also a policy used for monetary economic development strategy. The government that helps the developing country can also put money into the country's economic system in an effort to function relatively autonomously.
Fiscal economic development strategy uses the redistribution of government resources to positively affect the developing or grim economy. Changes in this type of strategy can affect the level of tax paid by people and businesses and financing and the existence of government facilities and programs. An example of this type of economic development strategy may be to reduce military expenditure to release sufficient resources to better fund the education system or to adjust taxes in an effort to narrowdisparity of OW income. Another example could include the conclusion of the tax limitr used by citizens who do not pay their taxes.
business or business development strategies make changes in the way the country deals with other countries, especially in the financial sense. This may include increasing or reducing assistance to countries that need economic assistance or changing policies, costs and rules on international trade. The techniques used in this type of economic development strategy include limitation of import amounts or tariffs to increase the costs of importing certain products and applying subsidies to support trading with the desired items. Extreme business strategy may include an embargo, a policy that basically cut off trade with a country or government.