- Student’s name
A Country’s Standards Of Living
Lisavia should adopt economic policies that help in growing the country’s international market, making the country attractive for foreign investment and increasing access to tertiary education. These policies increase capital and skill level of the country’s labor force. In the long run, the policies help in growing the country’s productivity and standards of living.
The first economic policy that should be adopted is integrating the country’s economy with the global economy. The country should pursue an export-led growth strategy. This strategy increases the market of the country’s products and encourages domestic firms to increase production. China has followed this strategy, and the standards of living across the country have been increasing. China introduced the policy in 1979 when it integrated its domestic economy with the global economy (Levy institute)
The other economic policy is decreasing corporate tax to make the country attractive to foreign firms. The policy shall lead to an influx of foreign firms in the country (Brookings Institution).These firms shall provide employment and create a market for the country’s products. In the long run, the country’s output, productivity and household income shall increase. For example, foreign investments in the country shall employ residents to work in the factories. This strategy has been adopted by China, and it has helped the country to create employment opportunities. Finally, the country should increase access to tertiary institutions. The increase in college enrollment shall help Lisavia in increasing the skill level and productivity of labor. Developed countries that have achieved high standards of living have been recorded high enrollment in colleges (Fisher).
In conclusion, Lasavia should integrate the country’s economy with the international economy and adopt economic policies that attract foreign investors. These two policies increase the influx of capital in the country and market for the country’s output. Finally, the country should increase access to tertiary education. This policy increases the skill level and productivity of workers.
- Fisher, P. “A Well-Educated Workforce Is Key to State Prosperity.” Economic Policy Institute, 2013
- Brookings Institution. “If Tax Cuts Boost Foreign Investment, The Income Boost May Be Moderate.” Tax Policy Center, 22 Sept. 2017
- Levy institute. “Publications.” The Contradictions of Export-Led Growth | Levy Economics Institute, 2018.
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