To help encourage economic growth, a country can A. stop selling goods to other countries.

To help encourage economic growth, a country can

A. stop selling goods to other countries.

B. invest in research and development.

C. lay off unneeded workers.

D. lower requirements for education.

Answer: B. invest in research and development.

Forcing improvements in R&D is one of the effective ways to foster the economic growth of a country. It promotes invention, improves efficiency, and establishes new businesses and employment, which are beneficial in the process of long-term economic growth.

Whenever a country funds R & D, technological development and growth are encouraged in the nation’s different fields. For instance, spending on research in biotechnology could culminate in innovations relating to medical treatment, which in turn results in the establishment of new firms and high-technology employment opportunities. Likewise, research and development in renewable energy technologies lead to efficient and cost-effective energy solutions which have a positive effect not only on the energy industry but also on the related industries.

Similarly, research and development expenditure also helps in boosting the competitiveness of any country in the global market. Ideas consist in creating the high technologies and high products, by which a nation can produce competitive industries. For instance, electronics-sourced research and development investment in South Korea put it on the map of high-tech Smartphone and display manufacturers.

Moreover, through the spending on R&D, the efficiency and productivity of already existing industries are improved. For instance, various studies on the new technology that can be implemented in the manufacturing environment can assist in enhancing productivity as well as competitiveness among traditional industries. These, when combined, may result in increased wages hence improving the living standards of the people.

It also encourages the flow of foreign investment capital and skillful manpower in the nation. Industries that are predominantly concerned with R & D, usually grow to be prominent in developed countries, attracting global-based business companies and people with technical skills. For example, Singapore’s R&D capabilities make the country a preferred location for technology companies and start-ups, just as Israel draws such companies due to its high R&D capabilities.

Since R&D investment helps prepare the ground for constant Improvement and growth, it can be said that it forms a part of the long-term eradication strategy for any country that wants to improve its economy in future.