GMS 724 Chapter Notes - Chapter 3: Economic Freedom, Planned Economy, State Capitalism
15 May 2015
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Document Summary
Managers study a country"s economic environment to assess its performance, and estimate its potential: studying an economic environment helps managers make better investment choices and operating decisions. Figure 3 economic factors affecting international business operations. Figure 3 shows the importance of applying stems perspective: linkages among elements mean that change in one element in the economy affects other parts. Economic freedom is where people have the right to work. Produce, consume, save, and invest the way they prefer: measured across business freedom, monetary freedom, fiscal freedom, investment freedom, freedom from corruption, property rights, trade freedom, government size, financial freedom, and labor freedom. Economic freedom affects: growth rates, productivity, income levels, inflation, employment, life expectancy, literacy, political openness, environmental sustainability. The track record of free markets around the world indicates that economic freedom is positively related with financial prosperity, economic stability, and standards of living.
