Answer to Question #229036 in Macroeconomics for NS BUTHELEZI

Question

advise the government on how to promote industrial development in south africa

Answer 1

The government has the ability to promote industrial development in South Africa. How is it possible? First, it is advisable for the government to control the aggregate demand and supply. Here the government has the full control of lowering taxes; hence, encouraging more investors in South Africa. Second, by building a less competitive environment that might scare way new entrant in the market. Third, by supporting and building a stronger financial system that support the public sector and the private sector. This will encourage the production of export commodities; thus motivating new entrants. Finally, the government should monitor the implemented industrial plans, to see their effectiveness. In case , they are ineffective the legislators can amend the policies.