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But there should also exist a certain level of flexibility in order to encourage investors to open businesses within the country. Foreign investors need both security but also the promises of adaptability and flexibility, which will help them conduct organizational operations.
Stability should be offered by most industries and sectors, as well as national institutions. Among the sectors which reveal increased importance in offering stability are the financial sector and the banking sector. The financial sector, supervised by the country's central bank, must be stable as to develop and implement fair financial regulations, maintain an appropriate value of the national currency and reduce inflation. The banking sector has to be stable as to offer numerous credit and savings opportunities for entrepreneurs.
References
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Neoclassical Growth, CEPA Newschool, Retrieved at http://cepa.newschool.edu/het/essays/growth/neoclass/solowcont.htm. On February 7, 2008
References
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Gourvish, T., 2000, Entrepreneurship in Britain 1870-1914 - Failure or Adaptation, London School of Economics, Retrieved at http://www.dieboldinstitute.org/paper3b.pdfon February 7, 2008
Meade, J.E., 1962, a Neoclassical Theory of Economic Growth, Retrieved at http://www.economyprofessor.com/economictheories/neo-classical-growth-theory.phpon February 7, 2008
2008, Definition of Neoclassical Growth Model, Econterms, retrieved at http://economics.about.com/cs/economicsglossary/g/neoclassical_g.htm. On February 7, 2008
Neoclassical Growth, CEPA Newschool, Retrieved at http://cepa.newschool.edu/het/essays/growth/neoclass/solowcont.htm. On February 7, 2008
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