MGCR 382 Lecture Notes - Lecture 10: Hard Currency, Extraterritoriality, Bailment
Document Summary
Measures of political freedom vs measures of economic freedom. Past decade, more countries with decline in political freedom. 42 variables grouped as: size of gov"t expenditures, taxes and enterprises, legal structure and security of property rights, access to sound money, freedom to trade internationally. Sub-indices: business freedom, trade freedom, monetary freedom, government size, fiscal freedom, property rights, investment freedom, financial freedom, freedom from corruptions, labor freedom. Laws affecting international business transactions: maritime law (legal system in its own right) Cuba by applying them to companies based in third countries: the problem with extraterritoriality. Laws directed at foreign firms: nationalization: transfer of asset ownership from private sector to public sector, expropriation: gov"t takeover with, confiscation: gov"t takeover without compensation to private owners compensation. Laws directed at public sector (state-owned firms: privatization: transfer of asset ownership from public sector to private sector, modes: vouchers, auctions, private sale, key aspect in privatization: competition policy post transfer entry barriers.
