question_answer 2)

What are the various means by which countries are trying to strengthen their own domestic economies?

Answer:

The following are the various means through which the nations are trying to strengthen their own domestic economies (i) Nations are forming various regional and economic groupings like SAARC, European Union, G-8, G-20, ASLAN etc in order to Strengthen their economies through economic co-operation among the countries in the group to safeguard their common interests. (ii) They are also trying to know and analyse the development process adopted by their neighbouring nations, so as to evaluate their strengths and weaknesses and formulate policies accordingly. (iii) Nations have also resorted to liberalising their economies by minimising government interference in economic activities. The economy is governed by market forces which promote efficiency and strengthen the economy (iv) Nations have also adopted the process or globalization to integrate their economies with other economies of the world in order to provide wide international market to their domestic producers and attract foreign investment.