The benefits of lower interest rates, trade policy changes, and others.
Benefits
The benefits brought about by lower interest rates and changes in trade policies can be seen in the following aspects:
Stimulating consumption and investment: Lower interest rates reduce borrowing costs, encouraging both individual and business spending and investment. This helps increase market demand and drives economic growth.
Promoting economic recovery: When the economy slows down, lowering interest rates can boost market confidence, encourage spending and borrowing, and help mitigate the pressures of economic recession.
Enhancing international competitiveness: Changes in trade policies, especially lowering tariffs or removing trade barriers, can enhance a country’s or region’s international competitiveness, promote exports, and improve supply chain efficiency.
Improving capital flow: Lower interest rates typically encourage capital flows, attracting foreign investment and enhancing market liquidity and stability.
Promoting international cooperation: Adjusting trade policies can foster international collaboration, enhance global economic integration, and provide multinational companies with better market access and cooperation opportunities.
These policy adjustments can stimulate economic activity in the short term and support long-term sustainable growth.