Question

Which statement describes an effect of the economic incentive the company revived

Answer 1

Answer: Encouraging employment and boosting economic efficiency.

Explanation:

There are different mechanisms for how to improve the business of an individual company. This may be an economic intervention by a specific partner business entity, which will invest in the company to strengthen its business. However, it is much more effective if the government participates in strengthening the economic bodies in the country.

The government has many mechanisms by which it can foster a better economic climate for companies. To this end, we can mention the reduction of customs duties on certain raw materials that the company imports (in case it imports). Reduction of customs duties to a particular economic operator in case of export of their products (in case of export). The government can also achieve real business by lending to meager interest rate businesses. Reducing the administrative and bureaucratic obligations of companies towards the state can be a mitigating circumstance for companies because, in this case, the focus is on productivity. All these methods can also encourage employment because, in a favorable economic climate, there is also an increase in the volume of work, and therefore in the workforce.