Answer to Question #210163 in Economics of Enterprise for Abel

Question

The forecast is underpinned by the ability of the internet to replace the conventional international marketplace of production and cross-border exchange of products into virtual space. This leads investors to reduce their investment in foreign countries, which affects both employment and economic development. Suggest possible sustainable solution for this challenge.

Answer 1

Internet facilitates trade in the world by allowing firms to advertise goods, make and accept orders and trade products and services fast and effectively. This has made investors reduce investment in foreign countries affecting both employment and economic development. To deal with this challenge, possible solutions include creating duty drawback schemes and simplifying regulations on foreign trade.