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Peer

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Submitted By vhardge5613
Words 377
Pages 2
Veronica Hardge
Instructor Steven Stewart
ECON224
7/14/2013
Global Economies – International Economic Factors
I will discuss a few methods that are currently being used to encourage economic growth for the typical firm in Hong Kong and Singapore. One of the ways that can be utilized is expanding their fiscal policy, land, and taxes,
With the government expanding the fiscal policy this then can increase spending that will target towards many firms. Like the United States did when the recession started to take place in 2008 the President decided to partake on the increase in loans to different firms that was considered to be called a bailout by giving out loans to those companies in need. This can also help economic growth in Hong Kong and Singapore as it did in the United States. A lot of firms can pull out of debt by these loans offered by the government to bail them out.
Also, land is a big issue in both these countries because the country owns majority of the land. They will need to try different methods in order to give the people power over some of the land that is owned by the government. They can lease some of their land that will encourage economic growth as well. Land is a limited resource that is being held up by the government. By leasing some of the land it will increase with the infrastructure that can generate more jobs and income. More firms can start building and growing revenue for these two countries.
Taxes are another method that can be used to encourage economic growth for the firms in Hong Kong and Singapore. They both have high corporate income tax rates and income tax rates. If they lower some of their taxes they will encourage firms to stay in the country. With higher tax rates on income most firms move to countries that have lower tax rates where they can generate income. With all the things to take in consideration for the firms to function such as expenses and land taxes that they pay to the government, they are not generating revenue to continue to function at a level to where they can supply jobs and benefits to those that dwell in both countries.

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