Advantages (merits) of market production
- It encourages the production of high quality output hence better standards of living.
- It widens the tax base thereby increasing government revenue through taxation.
- It promotes the development of social and economic infrastructure in form of roads, marketing facilities, banks, telecommunication services etc. This leads to rural transformation.
- It stimulates capital accumulation as a result of increased savings and production activities.
- It increases foreign exchange earnings of the country as a result of increased production for export.
- It promotes the optimal exploitation and utilization of resources. This is as a result of increased production of goods and services for the export market.
- The presence of profit motive encourages hard work and large scale production. This promotes economic growth and development.
- It promotes technological progress as a result of increased innovations and inventions.
- It reduces on the dependency of the economy on other foreign economies for trade, manpower, technology etc.
- It increases the supply of industrial raw materials for agro based industries. This promotes the creation of forward and backward linkages between the agricultural and industrial sectors.
CATEGORIES Economics
TAGS Dr. Bbosa Science
