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Let's assume I'm the financial vice-president of WW Corp and I'm thinking about doing business in either A country or B country Both countries have

Let's assume I'm the financial vice-president of WW Corp and I'm thinking about doing business in either A country or B country

  • Both countries have the same current GDP

Country A

  • Democratic country, free speech
  • Enforcing property rights
  • Low investing in education and physical capital
  • High public spending and federal deficit
  • Sample income mean (n:100) is $894.96
  • Probability that a household's income is below the poverty line is 6%

Country B

  • Run by peaceful one-party gov
  • Budget has been balanced
  • Gov. spending is focused on education
  • Legal system is well developed, supporting property rights
  • Low corruption
  • No democracy, no elections, has political prisoners
  • Sample income mean (n:100) is $1000
  • Probability that a household's income is below the poverty line is 20%
  • Larger gap between the rich and the poor

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