implement policies

• trade policies

  • pursue free trade to increase net exports in a country
  • protect interests of its domestic producers
  • ensures they are able to export globally and earn a significant level of foreign currency
  • tariffs can be levied on value of imports such that it increases its price to domestic consumers and make imported goods less competitive, protecting domestic industries
• Export Processing Zones

  • attracts FDI and Trade
  • includes free trade zones, free ports, etc
  • stimulates growth of local industries to supply materials to foreign companies
  • aids employment
  • requires strong infrastructure and constant support in the form of capital or investments by the state
• FDI

  • can be implemented to attract foreign investments from TNCs so as to increase investments and spur greater long-run growth
  • can support domestic industries or support foreign companies via incentives such as subsidies, access to capital
• industry policies

  • to encourage growth across all industries through regulatory policies
  • requires good foresight by the state to identify a country's competitive advantage and provide support to grow these industries
• eg for trade policies

  in 2024, the EU ruled that products made with "forced labour" were to be banned from imports
• eg. for FDI

  in 2024, the Singapore government announced a tax scheme that is favourable to investments related to "high-value and substantive economic activities". Activities in support of the green transition and those to do with new innovation and research and development are some of the investments eligible for the scheme, as in setting up of expansion of manufacturing facilities
• eg. for EPZs

  from 1970 to 1990, Tijuana, Mexico had EPZs were the manufacturing and assembly of cars for exports would be there