Final answer:
A varied approach to growth including both internal and external strategies, such as human capital investment and market orientation, is essential for robust economic development. For instance, South Korea's significant investments in education and physical capital, along with embracing new technologies and international trade, have fueled their impressive economic growth.
Step-by-step explanation:
To what extent do you think it is essential to adopt a varied approach to growth, combining internal and external strategies? Balancing internal growth, involving introspection and self-awareness, with external growth through market orientation and international trade is indeed essential for robust development. This dual approach allows for personal and business incentives that foster human and physical capital expansion, leading to macroeconomic growth.
A competitive labor market creates a strong incentive for workers to acquire additional education and skills due to the potential of earning higher wages. Similarly, firms are motivated to invest in physical capital and worker training to increase profits. Furthermore, openness to new technologies and international trade are crucial for leveraging competitive markets to maximize resource allocation and growth. A prime example is South Korea, which combined investments in education (human capital), physical capital, and technology to achieve remarkable economic growth from the late 20th century onward.