Economic Growth, Investment Decisions And Economics Of Regulation

1243 Words5 Pages
Economic Growth, Investment Decisions and Economics of Regulation Economic Growth:- Refers the amount of goods and services that are produced by per head of population over a period of time Investment Decision:- Refers to the decision of the person who is investing the money or the person of top level management with respect to the amount of money to be invested in different investment opportunities. Economics of Regulation:- Refers process of imposing rules by government and any governing body .Regulations have impact on both micro and macro economics factor. Economic Growth :- Growth of an economy depends upon growth enabling factors followings are some…show more content…
Developed nations are generally at the cutting edge of technology so they should be focused on higher education for increasing per capita of GDP Developing nations should be focused on primary and secondary education to have greater impact on growth of GDP never the less investment should be made at all level of education Tax and Regulatory Systems:- The countries in which tax system supports entrepreneurship grows faster then the countries where tax system does not support entrepreneurship Free Trade and Unrestricted Capital Flows :- free trade policies and Unrestricted Capital Flows enable a economy to grow at a faster rate like FDI(foreign direct investment) where foreigners are allowed to invest in capital development and infrastructure development of country and FPI(foreign portfolio investment) where the foreigners are allowed to invest in the equity of country examples countries like Brazil and India Factors Limiting Growth in Developing Countries Low saving and investment:- low savings and investments leads to lower capital lower capital leads to slow economic growth since capital and labor are primary factor for growth of an economy Poorly developed financial markets:- financial market:- Financial Markets and Intermediaries help in Allocating funds to projects with highest risk-adjusted returns it become difficult for a country having Poorly developed financial markets to allocate fund efficiently that leads to slows down in economic
Open Document