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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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