Question

What role does infrastructure development play in Local Economic Development?

• A. It has minimal impact on economic development
• B. It attracts foreign investment but doesn’t affect local businesses
• C. It enhances connectivity, reduces transaction costs, and improves access to markets
• D. It only benefits urban areas, not local economies

Answer 1

Answer:

C. It enhances connectivity, reduces transaction costs, and improves access to markets

Infrastructure development is crucial for LED as it improves local connectivity, facilitates the movement of goods and people, reduces business costs, and opens up new opportunities for local businesses and industries to access larger markets.