Question
Sometimes an economy cannot grow because of external factors, such as
lack of skilled labor.
poor infrastructure.
low domestic demand.
low demand for exports.
lack of skilled labor.
poor infrastructure.
low domestic demand.
low demand for exports.
Answers
Answered by
GPT-5 mini
Only "low demand for exports" is an external factor. The others are domestic (internal) constraints:
- Lack of skilled labor — internal (education, training, migration policy).
- Poor infrastructure — internal (public investment, regulation, PPPs).
- Low domestic demand — internal (household incomes, fiscal/monetary policy).
Why it matters: external demand depends on foreign markets and global cycles; the rest can generally be addressed by domestic policy and investment. Quick remedies: invest in education/skills, upgrade infrastructure, stimulate domestic demand (targeted fiscal policy, social transfers), and, for weak export demand, diversify markets/products and improve competitiveness.
- Lack of skilled labor — internal (education, training, migration policy).
- Poor infrastructure — internal (public investment, regulation, PPPs).
- Low domestic demand — internal (household incomes, fiscal/monetary policy).
Why it matters: external demand depends on foreign markets and global cycles; the rest can generally be addressed by domestic policy and investment. Quick remedies: invest in education/skills, upgrade infrastructure, stimulate domestic demand (targeted fiscal policy, social transfers), and, for weak export demand, diversify markets/products and improve competitiveness.
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