Essay on Property Rights And Economic Growth

776 Words Feb 1st, 2016 4 Pages
1. Property right and economic growth go hand-in-hand. When one is entitled to property rights and is more individualized, there is more economic growth within the nation. People like to associate a market economic system, strong property rights protection, and economic progress. Nevertheless, no society is immune to correction. In some countries, the rule of law minimizes corruption. Corruption is seen and treated as illegal, and when discovered, violators are punished by the full force of the law. Economic evidence suggests that high levels of corruption significantly reduce the foreign direct investment, level of international trade, and economic growth in a country. Corrupt politicians and bureaucrats reduce the returns to business investment and, hence, reduce the incentive of both domestic and foreign businesses to invest in that country. The lower level of investment results in slow economic growth. Thus, we need to expect a country with high level of corruption to have a much lower rate of economic growth if they had not been as corrupt. Anticorruption acts are crucial to have a growing economy.
2. For the most part, China, Russia, and Germany are three big countries; and the automobile company would probably benefit if they choose any of the three. However, there are also challenges. It is well known in Germany that the automobile industry is very competitive. Also, the economic condition is not quite as strong in China, especially in this segment. Russia,…

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