Question

Determine whether the following policies and programs support a political environment that promotes economic growth and development in less-developed countries (LDCs). For those that help promote economic growth and development in LDCs, classify each policy or program into one of the following categories: law and order, infrastructure, or international trade.

1. Competitive markets
2. A market-determined exchange rate
3. Artificially high exchange rates
4. Efficient transportation systems

Answer 1

The categorization could be made as following :-

1. Competitive markets - Facilitates economic growth, that is, law and order.

2. A market-determined exchange rate - International trade and it also supports and facilitates economic growth.

3. Artificially high exchange rates -International trade due to low level of burden of exchange rates to other countries.

4. Efficient transportation systems - Infrastructure as infra is a must need for a competitive market to run effectively.