Question

Discuss the factors that contribute to economic growth. Discuss at least 5 of the factors: 1. Quality and Quantity of a Country's resources 2. Technology 3. Improvements and greater stock of resources 4. Increased productivity 5. Savings and Investment including investment in human capital 6. Infrastructure 7. Research AND Development 8. Protection of Property Rights 9. Free Trade 10. Education

Answer 1

The factors that contribute to economic development are:

--Technology: The emerging technologies make it possible to provide an efficient answer to the demand for diversification, product personalization, and customization. Therefore, the structure of supply is becoming more innovative and flexible. Today it is possible to combine small-scale production units with high quality and high productivity efficiently at increasingly accessible prices. In today's scenario it is possible for both large and small firms to think in global terms. The modern technological perspective implies the requirement for all interests, large and small, to seek arrangements such as transnational mergers, consortia, joint venture agreements, and shared production and licensing agreements with other companies. The consumer goods and manufacturing companies have developed online links to their suppliers and customer support. Advancements in the computer industry and telecommunications have increased employment opportunities and strengthened economic growth. Furthermore, ecommerce and online banking capabilities have also helped decreasing the cost of doing business

-- Free Trade: Free trade implies when there is free movement of goods services, capital, personnel, technology cross borders. Free trade benefits consumers, firms and the whole global marketing. It allows economies of scale and a greater choice of goods. From the organizational perspective, with the free it have more data, more marketing formats, and more online places to communicate with potential customers. From the consumer perspective, they are impacted from a privacy point of view as it is increasingly personalized and data-driven exposure to 'relevant' advertisement materials. It results in improving economies of scale thus leading to economic growth.

-- Infrastructure: Infrastructure includes vital services and facilities such as good water systems, telecommunications, airports roads, sewage treatment, etc. The dearth of any of these facilities mostly can negatively affect the process to achieve reducing poverty and economic growth.

-- Research and Development: It plays a vital role in the process of innovation. It's It helps in transforming the products, processes, and services to be more efficient and less time consuming. It increases productivity at low cost thus contributing to the economic growth

-- Education: Economists consider education as an investment that has both private and social benefits. Education is highly relevant and has the potential to equip individuals with skills required to improve their livelihoods, thus holds the power to transform people’s lives. Additionally, education is the major source of human capital, which is the most vital form of capital for the long term economic growth.