What macroeconomic and microeconomic policy can u recommend to increase S.A export?”
The best policy is to promote free trade and not just concentrate on increasing exports. Your entrepreneurs need cheap imports to produce exports that can compete in the world market. It is tempting to have high tariffs on imports to protect domestic producers but this is self defeating. It not only raises the cost of goods for everyone but also encourages domestic producers to be lazy. Low tariffs on imports also encourage trading partners to lower tariffs on your exports to them. Secondly, your entrepreneurs need to make profits in order to expand their business. Taxes suck away the profits and make enterprise less attractive. The entrepreneur has to ask: Why try to increase productivity if there is no additional benefit to offset the risk? A high capital gains tax is also harmful since it discourages investment. It also locks up capital in zombie companies since investors do not want to sell their position since it would require paying taxes on the profit. Thirdly, reduce regulation
