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International Business Assignment 1

This document contains a student assignment submitted to their professor of International Business. It addresses three questions: 1) It evaluates the statement that free market economies stimulate greater economic growth compared to command economies. It argues free markets have fewer regulations allowing flexibility, while command economies can hinder growth through inefficiencies. 2) It evaluates whether a democratic political system is essential for sustained economic progress. It notes democracy may encourage transparency but other factors like leadership are also important, as some non-democratic nations have grown economically. 3) It discusses the relationship between corruption, such as bribe-taking, and economic growth. It largely argues corruption is generally bad for growth as it can manipulate systems and slow progress

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Sudheer
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68 views3 pages

International Business Assignment 1

This document contains a student assignment submitted to their professor of International Business. It addresses three questions: 1) It evaluates the statement that free market economies stimulate greater economic growth compared to command economies. It argues free markets have fewer regulations allowing flexibility, while command economies can hinder growth through inefficiencies. 2) It evaluates whether a democratic political system is essential for sustained economic progress. It notes democracy may encourage transparency but other factors like leadership are also important, as some non-democratic nations have grown economically. 3) It discusses the relationship between corruption, such as bribe-taking, and economic growth. It largely argues corruption is generally bad for growth as it can manipulate systems and slow progress

Uploaded by

Sudheer
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Assignment

Sudheer (200511492)
Department of Project Management, Georgian College, ILAC
International Business
Professor: Idlir Proseku
17 May 2023
1. "Free market economies stimulate greater economic growth, whereas command
economies stifle growth". Evaluate this statement.
Ans 1: Free market economies have minimal government intervention. Therefore, there is
fewer or no regulations and restriction from the government which increases flexibility in the
market. This helps the market to adapt to changing trends, innovation, and efficiency and it
maintains a good supply and demand in the market. This means that the market can
contribute to a greater extent to the economy.
On the other hand, command economies have a great involvement of government. Which can
control and direct economic activities. Government is responsible for decisions regarding the
allocation of resources, production, and distribution. It is believed that command economies
can hinder growth due to some inefficiencies such as restrictions by the government and lack
of resource management and bad policies. This creates a rigid system that may hinder
innovation to changing consumer demands.

2. "A democratic political system is an essential condition for sustained economic


progress". Evaluate this statement.
Ans 2: The relationship between democracy and economic progress depends on many
factors. Democracy can encourage transparency and accountability, which can lead to
improved public services. In addition, democratic societies often provide political rights to
people, which can help individuals to participate in economic activities, express their ideas,
and invest in their own education and businesses.
However, there are countries, such as China and Singapore, with non-democratic political
systems that have achieved economic growth. The success of these countries is not the result
of a democratic system, however, due to a high degree of state intervention and selective
market-oriented reforms.
So, we can say that democracy can have a positive impact on economic progress, but it is not
the only factor. The success of an economy depends on many other factors beyond just
having a democratic government, such as good governance, strong leaders, and fairness for
all citizens.

3. What is the relationship between corruption in a country (i.e., bribe-taking by


government officials) and economic growth? Is corruption always bad?
Ans 3: Corruption, such as bribe-taking by government officials, is considered a crime in
many countries. This is generally bad for economic growth. It can hinder the growth of a
nation because some people can easily manipulate the system. When there is corruption then
it becomes easy for some people to escape from the system and they can easily misuse it.
This slows down the growth of a country. For instance, in some countries, police take bribes
to leave the culprit or thief and these people again indulge in criminal activities. Such kinds
of activities in every single part of a country can led to big economical hindrances for a
country. I believe corruption is always bad, however, if this corruption can solve an issue that
governments are ignoring and the issues can be of great importance, then I think it can be
good. Otherwise, I don’t believe that corruption in the long term is good.

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