Write 4 page essay on the topic Macroeconomics- methods of Economic growth for Singapore and Hong Kong.
The prices of goods offered by the economy have determination in a free price system (McEachern, 2012). The nations should look for the products and services that people are interested and focus on building them. Today, large nations that control the world’s trade depend on market economy since it is where they control and participate in both exports and exports. Singapore and Hong Kong are some of the new nations that have come of age and adopting the market economy to not only increase their competitiveness but also give it an economic advantage. Additionally, taxation laws are another way both Hong Kong and Singapore can use to encourage economic growth. If the economies do not give enough tax, they will not be able to supply the infrastructure and services they need to keep existing businesses or attract new ones.
Investment in infrastructure and human capital – safe and modern infrastructure guarantees investments in the country. Any country with a high number of investors leads to more exports from the country. Better investments, thus result in the growth of the economy of the nations (McEachern, 2012). The roads in Singapore and Hong Kong are of high quality thus offer quick and efficient transport system for the goods and services. Besides, improved infrastructures attract investors and reduce the cost of production. Availability of cheap electricity and enhanced road network is paramount to opening interior areas as they have potential when reach. Some of the newly industrialized nations managed to reach the stage because of the developed infrastructure. Similarly, availability of human capital is vital is any economy because it determines the input required towards higher production. For instance, any nation that wants to attract investors must ensure that it provides personnel that assist in the daily running of the institutions as well as firms that have been