BUSI 2701 Lecture Notes - Lecture 2: Planned Economy
Document Summary
Countries with favourable geography are more likely to engage in trade, which makes them more open to market-based economic systems, and the econ growth it promotes. Countries that invest in education have higher growth rates because the workforce is more productive (japan, south korea) Paralleling the spread of democracy since the 80s has been the transformation of centrally planned command economies to market-based economies. Deregulation: removing legal restrictions to the free play of markets, the establishment of private enterprises, and the manner in which the enterprises operate. Deregulation has allowed for a sharp increase in private enterprises. Laws protecting private property rights are required for a well-functioning market economy. The overall appeal of a country as a market depends on the likely long-term benefits of doing business in that country vs. the likely costs and risks. The wealth of consumers in the market. The likely future wealth of the consumers.
