Macroeconomics Essay Example | Topics and Well Written Essays - 750 words

Macroeconomics - Essay Example Briefly identify and explain three methods intended to encourage economic growth for the typical firm in Hong Kong. Currently, various methods are being enacted by the government to encourage economic growth of the. These include: Adoption of free trading market policies Free markets have increased exports resulting in an increased revenue and surplus trading balance that increases the GDP, overall. Modern technological & labor advancement Boosting the technological sector has not only resulted in grooming of Hong Kong as a financial hub but has also increased the quality & quantity of production which has upgraded the manufacturing sector. Increased adoption of technology has improved the performance of labor, considerably. Adapting limited taxation strategy to attract Foreign Direct Investment Limited-tax policies, upgraded infrastructure and lenient incorporation procedures has played a major role in attracting Foreign Direct Investment. This capital inflow has not only increased revenue but has also decreased the unemployment level. Foreign Direct Investment is a major contributor to economy’s growth. ... ic growth is encoraged by productivity promotion, in accordance with the supply side of the economy, then there will be an increase in aggregerate supply as well as aggregerate demand resulting in a non-inflationary growth. Briefly describe Singapore’s economy (background, GDP, growth rate, etc.) Singapore is an open, trade-oriented economy which has a corruption-free government, skilled work-force, highly developed infrastructure with a good manufacturing sector mainly lead by electronics and biomedical manufacturing industries. GDP (2009): $182.23 billion GDP real growth rate (according to IMF 2009): negative 1.3% GDP real growth rate (according to CIA world of fact book 2010): 14.6% Per capita GDP (2009): $36,537 In 2009, the manufacturing sector with 26.3% and services sector with 69.1% has boosted Singapore’s economy. Briefly identify and explain three methods intended to encourage economic growth for the typical firm in Singapore. Following are few different metho d being used, to increase the economic growth for a typical firm in Singapore. Shifting towards service oriented economy Growth in the service sector increases the growth of overall economy. Financial services facilitates investment while telecommunications and power generation services helps to run a successful market economy. Birth of efficient-markets Establishment of efficeint markets, where prices are determined by supply and demand with few restrictions on trading of goods and services and adoption of free trade has increased healty competition, resulting in significant increase in exports and surplus balance of trade which ultimately boosts the economic growth. Approbation & implementation of business friendly policies Singapore Government has adapted business friendly policieswith a