Gabriela Valdes 1 Chapter Question
Chapter 3
1. What is the relationship among property right, corruption, and economic progress? How important are anticorruption efforts in the efforts to improve a country’s level of economic development? Corruption can reduce growth but also how it can increase growth, for example, by avoiding bureaucratic delays. The results of cross-country empirical literature on the effect of corruption on growth are mixed. Since corruption is an incendiary topic that elicits much anger, it is also important to exercise caution and to pursue rational anti-corruption policies. The issue of data collection and accurate detection of corruption is vital again in this case, since sanctioning an entire group of people for corruption when only a subgroup is culpable is counterproductive.
2. You are senior management in a U.S automobile company considering whether to invest in production facilities in China, Russia, or Germany. These facilities will serve local market demand. Evaluate the benefits, costs and risks associated with doing business in each nation. Which country seems the most attractive target for foreign direct investment? Why? In general, China, Russia and Germany are three big countries; the automobile company will get benefit if it chooses to any country of the three, but it also face some challenges. It is well known in Germany, the automobile industry is very powerful, if the company chooses to invest in Germany, it needs to face numerous competitors. Also, in Russia, the trade barriers will obstacle the entry of automobile company. For China, the economic condition is weaker than Russia and Germany; automobile is a luxury product for lots of people. Therefore, the company needs to comprehensively consider the benefits and risks if it wants to invest in a new market. Therefore I would Invest in Germany the automobile industry is powerful although facing competitors can be resolved my setting a successful strategy.
3. A. What kind of economic system did India
1. What is the relationship among property right, corruption, and economic progress? How important are anticorruption efforts in the efforts to improve a country’s level of economic development? Corruption can reduce growth but also how it can increase growth, for example, by avoiding bureaucratic delays. The results of cross-country empirical literature on the effect of corruption on growth are mixed. Since corruption is an incendiary topic that elicits much anger, it is also important to exercise caution and to pursue rational anti-corruption policies. The issue of data collection and accurate detection of corruption is vital again in this case, since sanctioning an entire group of people for corruption when only a subgroup is culpable is counterproductive.
2. You are senior management in a U.S automobile company considering whether to invest in production facilities in China, Russia, or Germany. These facilities will serve local market demand. Evaluate the benefits, costs and risks associated with doing business in each nation. Which country seems the most attractive target for foreign direct investment? Why? In general, China, Russia and Germany are three big countries; the automobile company will get benefit if it chooses to any country of the three, but it also face some challenges. It is well known in Germany, the automobile industry is very powerful, if the company chooses to invest in Germany, it needs to face numerous competitors. Also, in Russia, the trade barriers will obstacle the entry of automobile company. For China, the economic condition is weaker than Russia and Germany; automobile is a luxury product for lots of people. Therefore, the company needs to comprehensively consider the benefits and risks if it wants to invest in a new market. Therefore I would Invest in Germany the automobile industry is powerful although facing competitors can be resolved my setting a successful strategy.
3. A. What kind of economic system did India