...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...
Words: 1526 - Pages: 7
...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 ...
Words: 1538 - Pages: 7
...Economic freedom is the key to our prosperity as a nation. Thomas Jefferson observed that “a wise and frugal Government, which shall restrain men from injuring one another, shall leave them otherwise free to regulate their own pursuits of industry and improvement.” Economic freedom, or the ability to profit from our own ideas and labor, to work, produce, consume, own, trade, and invest according to our own choices, has been a debate for many years. There are many statistics on both sides of the argument. I would argue that history has proven, time and time again, that a country with more economic freedom and less government intervention is more prosperous than one that is highly regulated by the government. Advocates of an expanded government argue that free markets cause income inequality, crises, and monopolies. They believe that more government control of the economy avoids these problems. Since President Obama has been at the helm of the United States, our economic freedom has declined. Eight of the past nine years the U.S has lost economic freedoms and went from being the 6th freest economy in the world to 11th. In 2013, Obama said, “We need to set aside the belief that government cannot do anything about reducing inequality." Technically, he might be right but the way for the government to help reduce income equality is to get out of the way of the American citizens. A 2014 study in an issue of Contemporary Economic Policy done by economist Oguzhan Dincer,...
Words: 615 - Pages: 3
...Economic Freedom and Wealth Economic freedom is the ability for an individual to prosper with minimal intervention from government. In an economically free society, individuals are empowered to succeed or fail based on their own individual abilities. Higher levels of economic freedom lead to higher levels of economic growth and income. The level of economic freedom varies among different regions and countries across the globe. Thus, levels of prosperity and wealth also vary widely across the globe. The Heritage Foundation, in cooperation with The Wall Street Journal, researches several factors to measure economic freedom across the globe. The Foundation issues the results of their research in the Index of Economic Freedom. The Foundation measures economic freedom based on ten factors: business freedom, trade freedom, fiscal freedom, government spending, monetary freedom, investment freedom, financial freedom, property rights, freedom from corruption, and labor freedom (The Heritage Foundation, 2011). While each of these factors are weighted equally in the Foundation’s results, business freedom, trade freedom, and government spending are some of the most important factors in the variation of wealth among nations. Business Freedom Business freedom measures the rights to establish and run a business within a country and the level of government interference. “Burdensome and redundant regulations are the most common barriers to the free conduct of entrepreneurial activity” (Miller...
Words: 1500 - Pages: 6
...Economic Freedom and Living Standards April 24, 2008 Research Paper Sweden, Ivory Coast, India, North Korea, Singapore, and Brazil April 24, 2008 Research Paper: Sweden, Ivory Coast, India, North Korea, Singapore, and Brazil A country with a free economy have a higher standard of living than countries with poor economies. The standard of living can be determined by the overall economic standing, policy or reforms, political, social, and cultural conditions that a country displays. These factors can be measured in different ways such as the GDP, population, history, and various sources. In this paper, I will examine the economic structure of six countries and emphasize factors that contribute to the standard of living. Sweden Sweden is the world's 27th freest economy. According to the 2008 Index of Economic Freedom (IEF), it has an economy that is 70.4% free. Services, industry, and agriculture account for 59.8%, 38%, and 2.8% of GDP (World Factbook). It relies heavily on international trade, accounting for more than 50% of GDP. Main exports include paper products, machinery and transport equipment, and chemicals. The population is 9 million with a GDP of about $308.9 billion. Citizens are provided with a broad spectrum of public services and social welfare benefits that guarantee a minimum living standard and all residents are covered by national health insurance (Soldenberg). It is known to have one of the highest living standards in the world. Factors...
Words: 4356 - Pages: 18
...goes into detail about the governments involved in a market economy, the government influences four main areas in the economy which are; enforcing antitrust laws, preserving property rights, providing a stable fiscal and monetary environment and preserving political stability. Also the report will cover why there can never be a truly ‘free market’ economy, where there is absolutely no government intervention. Market Economy In a market economy, the majority of a nation’s land, factories, and other economic resources are privately owned, either by individuals or businesses (Wild, Wild & Han 2010:151). It is also an economy in which prices of goods and services are freely set based on the laws of supply and demand which are unfettered by interference from a government or other outside bodies. A market economy at its basic is an economy run entirely by the market itself (McGuigan 2003:1). In contrast to a market economy is one which follows the Keynesian principals which is an economic theory which advocates government intervention, or demand side management of economy by increasing money supply or by actually buying things on the market itself, they believe that this will achieve full employment and stable prices (Web finance 2010:1). Market economy has come to be accepted as a norm across the world with many developing countries like India and China moving towards a full market oriented economy (economy watch 2010:1). The social democratic government of Australia adopted the principals...
Words: 319 - Pages: 2
...Student name: Victoria Pursley Name of author and title of reading: The Relation Between Economic Freedom and Political Freedom Please note: journal entries should be recorded on the supplied form as a Word document and submitted to Turnitin no later than the start time for the corresponding class session. You must answer ALL questions to receive full credit. You may include references to direct quotations, but all answers should be in your own words. In order to help you with class discussion, I would suggest printing out a copy of the journal and bringing it to class. You may also use this printed copy in class for recording additional observations and analysis. 1. Author Background/Context: Who (briefly) is the author & in what historical...
Words: 648 - Pages: 3
...(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,...
Words: 910 - Pages: 4
...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...
Words: 295 - Pages: 2
...[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...
Words: 4062 - Pages: 17
...International Business Project Economics of Kazakhstan: For most of the country’s history, nomadic people have inhabited Kazakhstan, but until recently the country has been strategically building its economy. The country is rich in oil and has been improving its drilling production after gaining independence in 1991. Oil production is estimated to reach about 2 million barrels per day by 2020. An estimated 4 billion tons of crude oil is recoverable and Kazakhstan also contains an estimated 15% of the worlds’ supply of Uranium and is currently the largest producer of the commodity. These two factors play a significant part in the country’s overall GDP and are its largest exports. By 2015, Kazakhstan is expected to be the tenth largest supplier of oil in the world. The country’s GDP is valued at 186.4 billion with a 7.5% growth rate, oil counting for 24% of the GDP and 65% of overall exports. Kazakhstan received a rating of 68 in the world for economic freedom following Portugal at 67. The economic freedom index ranks countries based on 10 different categories involving economic freedom: Property Rights, Freedom From Corruption, Business Freedom, Labor Freedom, Monetary Freedom, Government Spending, Fiscal Freedom, Trade Freedom, Investment Freedom, and Financial Freedom. Since last year they have experienced decreases in half of these categories, which is why their rating is slightly lower than last year. Because oil prices are continually rising, Kazakhstan’s...
Words: 713 - Pages: 3
...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...
Words: 1270 - Pages: 6
...retains top spot of world's freest economy 12 January 2012 Last updated at 05:28 GMT Hong Kong has been ranked as the world's freest economy for 18 consecutive years Hong Kong has retained its position as the world's freest economy, according to a ranking compiled by the Heritage Foundation, a conservative think tank. Singapore ranked second, followed by Australia, New Zealand and Switzerland. The index evaluates economic freedom by looking at the rule of law, regulatory efficiency, the size of government and open markets. The 2012 report said that economic freedom for the world as a whole had declined over the past year. "Most of that decline is due to a large increase in government spending worldwide," said Edwin Feulner, president of the Heritage Foundation. "Governments have justified this spending as a necessity to restart economic growth but it hasn't worked. We think it's time to give the market a chance to show what it can do," he added. North America and Europe suffered declines in economic freedom over the past year, while economic freedom increased in Asia and sub-Saharan Africa. The US came 10th, down from ninth place in 2011. Mauritius, which ranked eighth, was the first sub-Saharan African country to enter the top 10, Mr Feulner said. Hong Kong retained its top ranking for the 18th consecutive year, but Mr Feulner said that Singapore "was narrowing the gap". The report said the introduction of a minimum wage in May last year had "moved Hong Kong modestly...
Words: 958 - Pages: 4
...In an article titled Unions, Economic Freedom, and Growth the authors Randall G. Holcombe and James D. Gwartney attempt to enlighten the audience of the corruptness of modern labor unions while exposing the selfish intentions of many union supported laws. “While unions and economic freedom are conceptually compatible, labor law in the United States, and throughout the world, has restricted the freedom of contract between employees and employers (Holcombe and Gwartney).” Overall the article’s authors rely greatly on a logos approach to convince the readers of their arguments merit. The article was published in the winter 2010 edition of the Cato Journal. A peer-reviewed journal attended for scholars concerned with politics and the economy. The presentation is well thought out, highly educated and easy to follow. The authors’ ethos comes from the positions they hold within their communities. “Randall G. Holcombe is DeVoe Moore Professor of Economics at Florida State University, and James D. Gwartney is Gus A. Stavros Eminent Scholar at Florida State University (Holcombe and Gwartney).” Additionally the authors borrow ethos from over twenty credible sources with captions such as “Botero et al. (2004) find that countries with more regulated labor markets have higher unemployment and lower rates of labor force participation, so the reduction in economic freedom is associated with a reduction in employment (Holcombe and Gwartney) ” and “Siebert (1997) noted that the French minimum...
Words: 879 - Pages: 4
...NIGERIA Economic Freedom Score 25 50 75 100 free Most Least free 0 World Rank: 120 Regional Rank: 22 55.6 economic freedom score is 55.6, making its econN igeria’sby 120th freest inlast year, with improvementshas omy the the 2015 Index. Its score increased 1.3 points since in five of the 10 economic freedoms, including labor freedom, freedom from corruption, and the management of government spending, outweighing a decline in monetary freedom. Nigeria is ranked 22nd out of 46 countries in the Sub-Saharan Africa region, and its overall score is below the world average. Attempts to diversify Nigeria’s economy away from oil and gas have fallen flat. Over the past five years, economic freedom in Nigeria has declined by 1.1 points, with losses concentrated largely in the regulatory area. Nigeria’s rule of law remains weak, and the corruption that accompanies high levels of government spending and pervades the oil sector inhibits private-sector growth. Strong linkage to global markets through the trade in crude oil is the only bright spot in trade and investment regimes that are protectionist and adverse to competition. BACKGROUND: Nigeria achieved independence from Britain in 1960. Goodluck Jonathan became president after the sudden death of President Umaru Yar’Adua in 2010. Jonathan’s re-election in 2011 was heavily criticized among northern Muslims for not following the traditional Muslim–Christian rotating power agreement. In 2013, the government declared a state...
Words: 810 - Pages: 4
