International Busniess
Páginas: 2 (500 palabras)
Publicado: 13 de julio de 2012
Chapter 2 (critical discussion)
Hemisa Bhakta
3/8/2010
1. Free market economies don’t have barriers so it gives incentives easiness for foreign countries to enter the free market.In a state directed economy, government decide everything like what to produce, at what price to be sold, where to be sold and which give like no incentives to competition, therefore products stay thesame and no innovations is approached so economy is more stifle. Meanwhile, in a free market, more companies enter, new products compete, innovation grows, and therefore economy grows the countryprogresses.
2. A democratic system is not a necessary condition for a sustained economic growth. During the past 30 years we have seen that some of the undemocratic government countries have beengrowing really fast; which are China, South Korea, Taiwan Singapore and Hong Kong. And, if democracy was the case, then many Latin-American countries would have progressed rapidly. As the book says, Itoo believe that democracy is not necessary, but it can be an important factor. The truly essential component of economic progress is that countries should accept free markets systems in order toachieve economic progress. Without this, not even democratic countries would be able to progress.
3. I truly believe that corruption is not always bad. Corruption helps work to be done, likeforeign companies to establish in our country and bring progress with itself. But obviously, ethically I believe that corruption impedes the progress of a country because many of the money are taken bypolitics and individuals which then live nothing for the progress of the country. Corruption happens in two extents, and both have its limits, so it is not always bad. It helps to enter a country withhigh barriers, and therefore bring progress to it.
4. She says that the following factor are assessment to development: capabilities and opportunities that people enjoy, removal of major...
Hemisa Bhakta
3/8/2010
1. Free market economies don’t have barriers so it gives incentives easiness for foreign countries to enter the free market.In a state directed economy, government decide everything like what to produce, at what price to be sold, where to be sold and which give like no incentives to competition, therefore products stay thesame and no innovations is approached so economy is more stifle. Meanwhile, in a free market, more companies enter, new products compete, innovation grows, and therefore economy grows the countryprogresses.
2. A democratic system is not a necessary condition for a sustained economic growth. During the past 30 years we have seen that some of the undemocratic government countries have beengrowing really fast; which are China, South Korea, Taiwan Singapore and Hong Kong. And, if democracy was the case, then many Latin-American countries would have progressed rapidly. As the book says, Itoo believe that democracy is not necessary, but it can be an important factor. The truly essential component of economic progress is that countries should accept free markets systems in order toachieve economic progress. Without this, not even democratic countries would be able to progress.
3. I truly believe that corruption is not always bad. Corruption helps work to be done, likeforeign companies to establish in our country and bring progress with itself. But obviously, ethically I believe that corruption impedes the progress of a country because many of the money are taken bypolitics and individuals which then live nothing for the progress of the country. Corruption happens in two extents, and both have its limits, so it is not always bad. It helps to enter a country withhigh barriers, and therefore bring progress to it.
4. She says that the following factor are assessment to development: capabilities and opportunities that people enjoy, removal of major...
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