INTA 2XXX Lecture Notes - Lecture 3: Intermediate Good
12 Feb 2013
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Kuran factors that hinder growth of business: only three fortune 500 companies have originated in middle east. The inheritance system wealth was divided amongst sons. Kuran sanctioned that female children could also get a share. This factor led to a division of wealth. Every time a man dies, his wealth is divided between his children at every generation. This led to the division of businesses. Did not allow for the accumulation of capital which is necessary for business growth. In britain, a man"s wealth was passed to his first born son only. Completely opposite of middle east where all wealth and land was divided. When technologies became available for investment, accumulated wealth in britain was invested. No capital to invest in middle east: polygamy. Kuran states that a man can have four wives at most as long as he treats them equally and can afford it.
