Question

How might the principles of sustainability (such as increased efficiency) affect cost behavior overall? Think of an example of a sustainable change in process or material that could impact the cost equation of that cost (i.e., the total fixed cost versus the variable cost per unit). Describe this example in detail and what might happen to total fixed costs and per unit variable costs.

Answer 1

Cooperation to promote a supportive and open economic system that would lead to economic growth and sustainable development to better address the problems of environmental degradation is essential. Trade policy measures for environmental purposes should not constitute a means of arbitrary or unjustifiable discrimination or a disguised restriction on trade.. Environmental measures addressing transboundary or global environmental problems should, as far as possible, be based on an international consensus

Efforts should be taken that give first priority to support existing enterprises and local entrepreneurship as the best source of business expansion and local job growth

Because each community's most valuable assets are the ones they already have, and existing businesses are already contributing to their home communities, economic development efforts should give first priority to supporting existing enterprises as the best source of business expansion and local job growth. Luring businesses away from neighboring communities is a zero-sum game that doesn't create new wealth in the regional economy. Community economic development should focus instead on promoting local entrepreneurship to build locally based industries and businesses that can succeed among national and international competitors.