...Economic Freedom and Wealth GB540-05 Unit 2 Assignment 11/06/2012 Introduction Economic Freedom is an individual or corporation’s ability to exchange any goods or services without being forced to do so. Since everyone does not think or respond to a specific situation alike, each person is granted the freedom to respond in a manner they feel is appropriate and beneficial to his or her current situation. Economic freedom is heavily dependent on characteristics such as empowering individuals, an open competitive market, and does not discriminate in order to allow all parties involved a chance to be successful. Economic Freedom Index In Heritage Foundation’s release of the 2012 Index of Economic Freedom, the top ten countries range from Hong Kong to the United States. Economic freedom is determined by evaluating 10 components to arrive at the final index number. Each component is scored on a scale between 0 and 100 with zero being the lowest score and 100 being the highest. The overall economic freedom index number is an average of the 10 individual freedoms. In an effort to increase the understanding and readability of the economic freedom index, the 10 economic freedoms were grouped into four categories. The table below lists the 10 economic freedoms and the category in which it is classified under. |Rule of Law |Limited Gov’t ...
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...(1970). Martinez, on the other hand, maintains that the essence of a capitalist economy is derived from the government’s active participation with the market (2009). In Milton Friedman’s Capitalism and Freedom, he outlines that the government’s responsibility in a capitalist economy should be limited to protecting our freedom from both an international and domestic standpoint, to maintain law and order, to uphold private contracts, and to look after competitive markets (1970). The Marxist view, given by Howard Sherman in Reclaiming Evolution, says “a pure market capitalist system means that you can buy anything, so there would be no limits on political spending” (2000:94). Friedman’s view on the government’s role understands the need for some government regulation to avoid things like limitless spending, but would have any intervention contain a meaningful purpose and a swift conclusion. Under the classical liberalism perception any additional government involvement or regulations, other than what is outlined above, would result in decreased freedom for the citizens of the capitalist society. Reducing a citizen’s freedom undermines the foundation of a capitalist society. The concept of limiting the government’s abilities will therefore ensure the political and economic freedom a citizen within this type of economy has right to. In addition to imposing limitations on what the government can do,...
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...A free market is when businesses are governed by supply and demand and not restrained by government interference, except to enforce taxes and ownership of property. In a free enterprise system, the value of goods and services are determined by the market. For example, if the demand of a good is high then the price will be higher and if the demand is low then the price will be lower. This is why in a “perfect world” free enterprise leads to more efficient production and better response to changing consumer preferences. The free market responds more quickly to the needs of the consumer and promotes the use of better technology to produce goods and services. Supporters of the free market conclude that it contributes to political and economic freedom. Supply and demand is what creates the competition and makes sure prices stay low. On the other hand, free markets are not perfect at all. The simple fact that there is no provision of merit goods, such as education, housing and health, does not benefit the consumers. Another important thing is that the social costs are ignored. For example, private firms would ignore the external factors like road conditions and pollution. The people that are against the free market would conclude that the competitive environment causes a survival of the fittest. They would agree that money is not distributed fairly and the poor stays poor. Another fact is that the economy would no longer be stable and growth would go up and down leading to recession...
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...Capitalism and Freedom was a novel written by Milton Friedman in 1962 to defend his view of the social democrats. Born in 1912 to Jewish immigrants in New York City, he attended Rutgers University, where he earned his B.A. at the age of twenty. He went on to earn his M.A. from the University of Chicago in 1933 and his Ph.D. from Columbia University in 1946. Friedman was an American economist, statistician, and writer who taught at the University of Chicago for longer than three decades. His novel justifies the United States decisions before the Great Depression had occurred. Milton believes that governments are a means to an end, and one person should feel as if they must serve the government. Friedman makes a strong connection between political and economic freedom, in which he shows that free markets are a basis of political liberty, not a luxury. Freidman’s Capitalism and Freedom novel sold over 400,000 copies in the first eighteen years[1] and more than half a million since 1962. It has been translated into eighteen languages. Friedman argues for economic freedom as a precondition for political freedom. According to Microeconomics, Principles and Applications, “Capitalism is a type of economic system in which most resources are owned privately” (Hall, Lieberman G1). In what is known to be a free enterprise system, the government has a limited amount of interference and businesses are free to compete. Friedman’s thesis is that economic freedom is needed in order to have...
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...Patrick Moyes Economics for Global Decision Makers Week 2 Dr. Barbara-Leigh Tonelli February 12, 2013 Introduction: Economic freedom is defined as the basic right of all people to act freely in how they work, what they produce, what they consume, and how they invest their time and money. It is “an essential aspect of human liberty, without which a person’s rights to life, liberty, and the pursuit of happiness may be fundamentally compromised” (Miller, Kim, 2013). Economist/philosopher Friedrich A. Hayek stated that economic freedom is the “prerequisite of any other freedom” (Miller, Kim, 2013). Economic freedom, or lack thereof, is experienced in different levels throughout the world, depending on the degree to which governments restrain them in their countries. The Index of Economic Freedom, created 1995 by The Wall Street Journal and The Heritage Foundation, ranks the economic freedom of every country and reports year to year how the levels have changed. This paper will focus on the relationship between economic freedom and variations in wealth among countries, and will describe specifically how one country from the index has changed over the past 5 – 10 years. The Relationship between Economic Freedom and Variations in Wealth: According to the Index of Economic Freedom, researchers have established that economic freedom is directly associated with economic growth and prosperity (Mitchell, 2013). The wealthiest countries in the world, based on per capita GDP...
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...Excelsior College Chile culture ranked 79% in an overall economic freedom ranking, while in the United State there is a 76% ranking ("Country Rankings: World & Global Economy Rankings on Economic Freedom," n.d.) . You will find there are some considerable margins of difference between the two countries although they are about equally successful in the business and manufacturing industries. Chile has a business freedom ranking of 70.5% while they are the strongest in property rights at 90% ("Country Rankings: World & Global Economy Rankings on Economic Freedom," n.d.) . However, the Chileans weakest area is their financial freedom coming in at 70% which runs even with the United States over the last three years. Regardless of this information Chile remains of the highest degree of overall economic freedom in South and Central America, including the Caribbean region. This is in part to the Free Trade Agreement (FTA) established January 1, 2004 between the United States and Chile. This agreement allows for commercial trade of goods and services between the two countries as it has reduced the duties and been quite successful with hopes of eliminating tariffs by 2015. Business companies should ensure business with Chile since their economy is flourishing and their ranking in economic freedom continues to be among the top ten in the index ("Country Rankings: World & Global Economy Rankings on Economic Freedom," n.d.) . Chile is also the world’s largest producer of...
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...Corruption: Good or Evil Corruption in developing countries perpetuates to be one of the greatest factors of poverty, development and internecine conflicts. Although many developing nations are endowed with priced natural resources, yet they struggle and scramble for position in the lower rungs of the United Nations Development Index. Most developing countries perpetuate to grapple with the ever transmuting trends in global politics, economic and technological advancements having little or nothing to do due to the weakening effects of corruption on their very subsistence. From the USA to the Philippines, corruption perpetuates to have an adverse effect on the lives of the vast majority of the population. Understanding the concept of corruption presupposes that one should have a clear dichotomy of what it entails and what constitutes it in the simplest term. There is no single accepted definition for the term ‘corruption’ because what may seem corrupt in one society may not indispensably be perceived as such in another. Though there have been different endeavors to define it, there is no precise, clear definition that can be applied to all forms, types and degrees. According to Friedrich (1972), “Corruption is a kind of behavior which deviates from the norm actually prevalent or behaved to prevail in a given context, such as the political. It is deviant behavior associated with a particular motivation, namely that of private gain at public expense.” The Oxford English...
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...There has never been a time in history where there were not “poor” people. As a child, we lived in an old home in bad need of repair. Many today would probably call it little more than unfit. According today’s standards of poverty, my family would have been classified as such. However, we had clothes that were given or bought at second hand places and food on our table. We had chickens, raised a calf for meat, and grew a garden. We learned to can and preserve many types of food. My sister’s and I did not consider ourselves “poor” although we knew others had more than us. We felt rich because we were happy and loved. We were thankful for what we had. Our world today is not the same as it was then. Many are dissatisfied and unhappy while having everything money can buy. Yes, being “poor” brings hardships, but many times there are ways to make our world better with a little hard work. So how can we (government) fix the poor that lack in money and are unable to provide the basic necessities of life? Totally change the way we look at the poor. Stop enabling. Now, by this I mean… more taxes from those who have worked hard to earn their money is not going to answer the problem. Taking from one to give to another is our tax system at this time. Yes, I agree we need to help someone get back on their feet, but we also need to give them the tools to do so. We need jobs and more jobs. Jobs that pay more than minimum wages and training or education to enable unskilled or workers needed reskilled...
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...[pic]International Islamic University Chittagong (Dhaka Campus) Assignment On “Telecommunication Operator Banglalink™’s Operation in Bangladesh as MNE” Course Title: International Business Course Code: MKTG-5602 Assignment Submitted To Mr. Amir Ahmed International Islamic University Chittagong (Dhaka Campus) Assignment Submitted by, |Name |Metric No. | |Fuad Bin Mostafiz |M 091662 | |Md. Shahkwat Hossain |M091661 | |Md. Momenul Islam Khan |M 091651 | |Md. Zakir Hossain |M 091659 | |Khandkar Md. Zahiruddin |M091660 | ORIGIN OF THE REPORT This report is prepared for fulfilling the International Business, MKTG-5602; course requirement of Department Of DBA, International Islamic University Chittagong. This report mostly covers a research report on “Telecommunication Operator Banglalink™’s Operation in Bangladesh as MNE”. OBJECTIVE: Primary Objective: - Primary objective of the report is fulfilling the course requirement for Completion of MBA program under department of DBA, International Islamic University...
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...Economic Freedom Index Bangladesh’s economic freedom score is 53, making its economy the 130th freest in the 2011 Index. Its overall score is 1.9 points better than last year, mainly reflecting improvements in business freedom and investment freedom. Bangladesh is ranked 27th out of 41 countries in the Asia–Pacific region. Bangladesh’s economy remains overly dependent on agriculture, which accounts for almost 20 percent of GDP and employs more than half of the labor force. State-owned enterprises are a significant presence in most productive sectors, including those that are usually dominated by the private sector in other economies. Weak governance and structural problems continue to constrain Bangladesh’s development. The inefficient regulatory regime is often heavily politicized, and the substantial presence of state-owned enterprises crowds out private investment. Corruption, coupled with onerous bureaucracy, is still perceived as pervasive, and the underdeveloped financial sector impedes the growth of a more dynamic private sector. The Economic Freedom of Bangladesh Score Score (Avg.) Score Score (Avg.) 65.0 Business Freedom Avg. 64.3 55.0 Investment Freedom Avg. 50.2 58.0 Trade Freedom Avg. 74.8 20.0 Financial Freedom Avg.48.5 72.7 Fiscal Freedom Avg. 76.3 20.0 Property Rights Avg. 43.6 92.4 Government Spending Avg. 63.9 24.0 Fdm. from Corruption Avg. 40.5 68.6 Monetary Freedom Avg. 73.4 54.3 Labor Freedom...
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...SWOT Analysis of South Korea Market Strength 1. South Korea has a very high economic freedom. South Korea economic freedom score is 71.2 which makes its economy goes to the top 31st free economy in 2014. South Korea has improved on 0.9 point higher than last year due to their financial freedom and monetary freedom outweighing modest declines in business freedom, labor freedom, and fiscal freedom. South Korea is ranked 8th out of 42 countries in the Asia–Pacific region. 2. South Korea is moderately free of corruption. This makes South Korea a very clean place to conduct business where everything is fair towards the people which make it a very good place to conduct business if compare to country which has higher corruption rate. The Corruption Perception Index of South Korea is 5.60 out of 10; while countries in Asia score only 3.60 out of 10 and other all country corruption is 3.70 out of 10. This makes South Korea corruption level is lower than the other countries. It makes South Korea slightly better than the rest. Besides that, the Bribe Payer Index (BPI) of South Korea is quite high as it has score on 7.90 out of 10. This means that companies from South Korea are perceived as unlikely to engage bribery. 3. South Korea has a lot well educated labor which makes it easier to higher more labor to help them on their company. This is because South Korea has a very high education level. 4. The outbound travel market of South Korea is booming 5. Efficient in regulatory. In...
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...Name Professor Institution Course Date Germany and Canada; Why they are different? Introduction The economic status of a country is determined by various factors and various measures that are compared to other countries. The economic stability of countries is measured with consideration of various elements such as the general income of the citizens, and also the productivity of various groups and organizations in the nations. The economic contributions of economic institutions such as banks, private and public financial institutions are also used to determine the position of nations’ economic status. The index heritage scale is an essential parameter in determination of a country’s economic position in comparison with other nations across the world. The global economy ranking is therefore achieved after a comprehensive analysis of the economic positions of various countries, and this is with comparison of the pillars of the economy of the respective nations. Poverty, poor health and ignorance are considered to be the fundamental contributors of low index heritage scale due to their negative contributions towards the economy of a country. It is the responsibility of the government and key players in the economy of a country to ensure that the economic strategies and activities that they engage in positively help in eradication of poverty, reduction of ill health and control of unawareness among people and organizations. This paper aims at drawing a comprehensive and evidence-based...
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...HONG KONG Economic Freedom Score 25 World Rank: 1 Regional Rank: 1 50 75 Least free 0 Most 100 free 89.9 This economy is not graded freedom H ong Kong’s economic the 2012 Iscore. is 89.9, making its economy the freest in ndex Its overall score is 0.2 point higher than last year, with improvements in free- Freedom Trend 92 dom from corruption and the control of government spending partially offset by a small decline in monetary freedom. Hong Kong is ranked 1st out of 41 countries in the Asia–Pacific region. Hong Kong has demonstrated a high degree of resilience during the ongoing global turmoil and remains one of the world’s most competitive financial and business centers. The highquality legal framework, which provides effective protection of property rights and strong support for the rule of law, continues to be the cornerstone of strength for the dynamic city economy. There is little tolerance for corruption. Regulatory efficiency and openness to global commerce strongly support entrepreneurial dynamism, while overall macroeconomic stability minimizes uncertainty. Economic interaction with China has become more intense and sophisticated, chiefly through strengthened financial linkages, and financial markets are extremely well capitalized. Although Hong Kong maintains its ranking as the world’s freest economy, policies proposed or implemented since the second half of 2010, particularly the establishment of a minimum...
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...SWOT Analysis of South Korea Market Strength 1. South Korea has a very high economic freedom. South Korea economic freedom score is 71.2 which makes its economy goes to the top 31st free economy in 2014. South Korea has improved on 0.9 point higher than last year due to their financial freedom and monetary freedom outweighing modest declines in business freedom, labor freedom, and fiscal freedom. South Korea is ranked 8th out of 42 countries in the Asia–Pacific region. 2. South Korea is moderately free of corruption. This makes South Korea a very clean place to conduct business where everything is fair towards the people which make it a very good place to conduct business if compare to country which has higher corruption rate. The Corruption Perception Index of South Korea is 5.60 out of 10; while countries in Asia score only 3.60 out of 10 and other all country corruption is 3.70 out of 10. This makes South Korea corruption level is lower than the other countries. It makes South Korea slightly better than the rest. Besides that, the Bribe Payer Index (BPI) of South Korea is quite high as it has score on 7.90 out of 10. This means that companies from South Korea are perceived as unlikely to engage bribery. 3. South Korea has a lot well educated labor which makes it easier to higher more labor to help them on their company. This is because South Korea has a very high education level. 4. The outbound travel market of South Korea is booming 5. Efficient in regulatory...
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...Strength 1. South Korea has a very high economic freedom. South Korea economic freedom score is 71.2 which makes its economy goes to the top 31st free economy in 2014. South Korea has improved on 0.9 point higher than last year due to their financial freedom and monetary freedom outweighing modest declines in business freedom, labor freedom, and fiscal freedom. South Korea is ranked 8th out of 42 countries in the Asia–Pacific region. 2. South Korea is moderately free of corruption. This makes South Korea a very clean place to conduct business where everything is fair towards the people which make it a very good place to conduct business if compare to country which has higher corruption rate. The Corruption Perception Index of South Korea is 5.60 out of 10; while countries in Asia score only 3.60 out of 10 and other all country corruption is 3.70 out of 10. This makes South Korea corruption level is lower than the other countries. It makes South Korea slightly better than the rest. Besides that, the Bribe Payer Index (BPI) of South Korea is quite high as it has score on 7.90 out of 10. This means that companies from South Korea are perceived as unlikely to engage bribery. 3. South Korea has a lot well educated labor which makes it easier to higher more labor to help them on their company. This is because South Korea has a very high education level. 4. The outbound travel market of South Korea is booming 5. Efficient in regulatory. In South Korea, you will only...
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