INTB 2202 Lecture 3: Chap 3
19 Feb 2019
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Document Summary
A common measure is gross national income (gni) A purchasing power parity (ppp) adjustment provides a more direct comparison of living standards in different countries. Relationship between political economy and economic progress: economic freedom in a market economy creates greater incentives for innovation and entrepreneurship than in either a planned or mixed economy. Hong kong, singapore, the u. s. , canada, and germany: countries that lack economic freedom also fail to achieve respectable economic growth, strong legal protection of property rights is another requirement for a business environment conducive to innovation, entrepreneurship, and economic growth. Individuals and businesses must have the opportunity to profit from innovative ideas. Geography, education, and economic progress: other factors influencing a country"s rate of economic development include, geography: influences economic policy, and thus economic development. Countries with favorable geography are more likely to engage in trade which can promote economic growth: education levels. Countries that invest more in the education of their young people develop faster economically.
