In Free to Choose, Milton Friedman makes the case that capitalism, i.e. free markets combined with governments that follow The Do Nothing Policy produce prosperity and freedom. In lecture, production possibilities frontiers were used to show the mechanism by which capitalism produces wealth, i.e. specialization according to comparative advantage and exchange.

The history of the 20th century is replete with examples of countries that have followed just such a policy of free market capitalism and experienced large increases in total and per capita wealth plus created stable peaceful political societies characterized by respect for individual rights and maximizing personal freedom, e.g. Japan, Taiwan, Korea, Singapore, and, until the communist Chinese takeover, Hong Kong. In the 20th century, countries that were already prosperous and free that continued choosing capitalist systems became more prosperous, e.g. the United States, Western Europe, Canada, and Australia.

A key feature of free markets is a level playing field where the rules apply to everyone whether they are rich, poor, powerful, or connected. The level playing field is sometimes referred to as the Rule of Law (ROL).

The ROL according to the Oxford English Dictionary is "The authority and influence of law in society, esp. when viewed as a constraint on individual and institutional behaviour; (hence) the principle whereby all members of a society (including those in government) are considered equally subject to publicly disclosed legal codes and processes."

The ROL can break down in two ways. First, rulers and their entourage can be held above and not be subject to the law or, second, immunity from the law can be bought. In either case, the ROL does not exist or, alternatively, that society has a corruption problem.

A conundrum of the “capitalism produces prosperity and freedom” policy are countries that have capitalist economies but haven’t produced much prosperity and are frequently but not exclusively characterized by bouts of politically based violence and oppressive abusive dictatorships, e.g. most middle eastern countries, most of South and Central America, Mexico, India, Russia, and until the last 20 years communist China.

In The Mystery of Capital, Hernando DeSoto addresses this conundrum and points out that adopting capitalism is required but not sufficient to produce U.S. and western European levels of prosperity and freedom. DeSoto argues that adopting capitalism isn’t enough. Countries have to choose a capitalist economic system, have ROL, plus do something else.

According to Hernando DeSoto, why are many 3rd world countries not getting rich even though they have ostensibly capitalist free market economies?

What is the something else these countries are missing?

Read Chapter 7, "Deng Perfects Socialism" and Chapter 5 'The Shanghai Gang" in The Party by Richard MacGregor.

In what sense and to what degree does Communist China meet DeSoto's requirement for a capitalist economy that will use free markets to create and equitably distribute wealth.

Does Communist China have a capitalist free market economic system where there is ROL and no corruption?

Explain with examples from The Party.

Requirements:

Your submission should be no less than 1000 words. Short papers will be penalized. There is no maximum length.
Proper grammar and effective use of English counts.

Answers

Answer 1

1. According to DeSoto, 3rd world countries like South America, which have capitalist economies but are not getting rich due to political crises and dictatorships.

2. The author also argues that more efforts is needed than just adopting the capitalist regime, it is essential to develop the system through strategic actions that guarantee ROL, and economic growth measures.

3. China has a Communist party with capitalist characteristics, for example, with the opening of the Chinese market, which constituted a great and rapid development in the productive and industrial system of the country.

What is the capitalist system?

It is an economic system whose focus is an accumulation of wealth and profitability through private property and the means of production. It is based on the free market with less state intervention.

Therefore, the author argues in favor of capitalism and its positive characteristics for the economy, politics and society as a whole.

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Related Questions

Msi is considering outsourcing the production of the handheld control module used with some of its products. the company has received a bid from monte legend co. (mlc) to produce 11,000 units of the module per year for $17.00 each. the following information pertains to msi’s production of the control modules: direct materials $ 8 direct labor 4 variable manufacturing overhead 4 fixed manufacturing overhead 8 total cost per unit $ 24 msi has determined that it could eliminate all variable costs if the control modules were produced externally, but none of the fixed overhead is avoidable. at this time, msi has no specific use in mind for the space that is currently dedicated to the control module production. required: 1. compute the difference in cost between making and buying the control module. 2. should msi buy the modules from mlc or continue to make them? 3-a. suppose that the msi space currently used for the modules could be utilized by a new product line that would generate $41,000 in annual profit. recompute the difference in cost between making and buying under this scenario. 3-b. does this change your recommendation to msi?

Answers

Msi should continue to make  control module because buying the control module will result into incremental cost of $11,000 to the msi.

Differential analysis

1. Differential analysis

Buy control module (Alt 1) or Make control module (Alt 2)

 Buy control module       Make control module   Differential effect on cost

                    (Alt 1)                      (Alternative 2)                   (Alternative 2)

Purchase price $187,000                   -                                     ($187,000)

(11,000×$17)

Direct materials  $0                        $88,000                              $88,000

(11,000×$8)

Direct labor         $0                        $44,000                              $44,000

(11,000×$4)

Variable  overhead $0                    $44,000                              $44,000

(11,000×$4)

Fixed overhead $44,000                 $44,000                                $0

(11,000×$8)

Total cost  $231,000                          $220,000                           ($11,000)

Difference in cost $11,000

2. Based on the above differential anaylsis msi should continue to make  control module reason being that buying the control module will result into incremental cost of $11,000 to the msi.

3a. Differential analysis

Buy control module (Alt 1) or Make control module (Alt 2)

 Buy control module       Make control module   Differential effect on cost

                   (Alt 1)                      (Alternative 2)                   (Alternative 2)

Purchase price  $187,000                   -                                     ($187,000)

(11,000×$17)

Direct materials    $0                        $88,000                              $88,000

(11,000×$8)

Direct labor           $0                        $44,000                              $44,000

(11,000×$4)

Variable  overhead $0                    $44,000                              $44,000

(11,000×$4)

Fixed overhead  $44,000                 $44,000                                $0

(11,000×$8)

Less profit from new product line

                 ($41,000)                              $0                                     $41,000

Total cost $190,000                          $220,000                           $30,000

Difference in cost $30,000

3b. Based on the above differential anaylsis msi should buy the control module reason being that buying the control module will result into incremental savings of $30,000 to the msi. The recommendation to msi is changed based on the new scenario.

Inconclusion Msi should continue to make  control module because buying the control module will result into incremental cost of $11,000 to the msi.

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Is the process of identifying customers for whom the company will optimize its offering a. searching b. research c. targeting d. deciphering e. customizing

Answers

Targeting is the process of identifying customers for whom the company will optimize its offering.

What is targeting?

Targeting is the ability to identify individual or group of people that needs a required service or goods.

These are the people a business aims its marketing efforts and resources at.

Therefore, Targeting is the process of identifying customers for whom the company will optimize its offering.

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In liability insurance, the maximum amount that the coverage will pay for loss to any one person regardless of overall policy limits, is known as the:

Answers

Answer:

Insurance coverage limit

Explanation:

have a good day

What is the primary reason for us government bond yields.

Answers

Answer: Government bonds form a large proportion of investor holdings, and corporate bonds are often priced relative to corporate bonds.

Explanation:

A drop in which of the following measures would typically send a government bond price down? U.S. government bonds offer higher returns than corporate bonds, so investors find government bonds a more attractive investment. All governments mandate interest rates as part of their economic policy. Non-government borrowers are slightly less safe and therefore must offer slightly lower yields.

If the planned budget revenue for 5,000 units is $120,000, the flexible budget revenue for 4,500 units is ______.

Answers

Based on the planned budget revenue, the flexible budget revenue for 4,500 units will be $108,000.

What is the flexible budget revenue?

First find the selling price under the planned budget:

= 120,000 / 5,000

= $24

The flexible budget revenue will be:

= 24 x 4,500 units

= $108,000

In conclusion, the flexible budget revenue is $108,000.

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Name the three major credit reporting agencies

Answers

Answer:

Transunion, Equifax, Experian

Explanation:

These are three credit reporting agencies that i can give you.

When the members of a marketing channel operate to satisfy their own objectives and maximize their own profits, often at the expense of the other members, the channel operates as:.

Answers

The answer to your question is “an independent marketing channel” Have a great day.

What is the reason for using progressive taxes on income?
A) Lower-income individuals have a lower cost of living and can afford to pay more in taxes.

B) Higher-income individuals are more likely to spend their income on consumption of goods, and paying more taxes discourages spending.

C) Higher-income individuals are more likely to afford their standard of living and can afford to pay more in taxes.

D) Individuals of all incomes pay the same percentage of their income toward the tax, making it a fair tax.

Answers

The reason for the progressive tax is because the Higher-income individuals can afford a good standard of living and can pay more in taxes.

What is a progressive tax?

This is a type of tax imposed based on a taxpayer's ability to pay, that is, the higher the income. the higher the taxrate applicable to the taxpayer's income.

The reason for progressive tax is that a tax would be a disproportionate burden for people with low incomes.

Therefpre, the Option C is correct.

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Billy Witz sells vacuum cleaners door-to-door. After showing Mrs. Davis several models and demonstrations, Billy can tell she is hesitant but interested. Which trial closing is Billy likely to use to ensure a sale

Answers

The trial closing that Billy is most likely to use to ensure a sale will be:

"Do you want the standard model or one with the special options package?

What is a trial closing?

In sales negotiation, this technique is employed by the seller to assess the buyer's readiness to make a purchase decision.

The technique usually comes in the form of questions that ask for decisions on minor selling points.

Therefore, the technique are used in a way to ensure and finalize a sale with the intending buyer.

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Helpful hardware sells windows (80% of sales) and doors (20% of sales). the selling price of each window is $580 and of each door is $1,180. the variable cost of each window is $385 and of each door is $880. fixed costs are $1,737,720. the weighted-average contribution margin is:

Answers

The weighted-average contribution margin of Helpful hardware which sells windows and doors is $216.

Calculation of Weighted-Average Contribution Margin

The weighted-average contribution margin can be calculated using the following formula:

Weighted-average contribution margin = (Contribution margin of windows * Percentage sales contribution of windows) + (Contribution margin of doors * Percentage sales contribution of doors) ……….. (1)

Where:

Contribution margin of windows = Selling price of each window - Variable cost of each window = $580 - $385 = $195

Percentage sales contribution of windows = 80%

Contribution margin of doors = Selling price of each door - Variable cost of each door = $1,180 - $880 = $300

Percentage sales contribution of doors = 20%

Substituting all the values into equation (1), we have:

Weighted-average contribution margin = ($195 * 80%) + ($300 * 20%) = $216

Therefore, the weighted-average contribution margin is $216.

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The Revised Act permits a corporation to purchase, redeem, or otherwise acquire its own shares unless:

Answers

Answer:

The corporation's total assets after the distribution would be less than the sum of its total liabilities and the maximum amount that then would be payable for all outstanding shares having preferential rights in liquidation. The corporation would be unable to pay its debts as they become due in the usual course of its business.

Explanation:

If government land is leased or sold for oil and coal exploration at lower-than-market rates, it is an example of a(n) Group of answer choices earmark. subsidy. tax expenditure. earned income tax credit.

Answers

If government land is leased or sold for oil and coal exploration at lower-than-market rates, it is an example of subsidy.

What is subsidy?

A subsidy serves as the direct or indirect payment to individuals or firms from the government.

Therefore, government used subsidy to to achieve greater economic efficiency.

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Bookmark question for later Which of the following is not one of the seven rights of an empowerment culture? a. Communicate the right expectations b. Provide the right training c. Measure the right things d. Demand the right behavior e. Give employees the right opportunity f. None of the above; i.e., they are all elements of an empowerment culture

Answers

The  Demand the right behavior is not one of the seven rights of an empowerment culture

What is empowerment culture?

Empowerment culture can be defined as the rules and regulation that is used to govern a company including their policy, value and norms.

Empowerment culture is important as it enables  employee to know and understand the culture of the organization they work for as well as the goals and objective of the organization.

Therefore the  Demand the right behavior is not one of the seven rights of an empowerment culture

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A pay-for-performance plan in which employees are paid according to their productivity is referred to as

Answers

A pay-for-performance plan in which employees are paid according to their productivity is referred to as piece rate.

What is piece rate?

Piece rate  can be defined as the process in which employee are being paid based on the number of product produced by the employee.


Some companies or employer tend to make use of piece rate pay by paying their employee based on the quantity of goods the company manufacture on a daily basis.

Inconclusion a pay-for-performance plan in which employees are paid according to their productivity is referred to as piece rate.

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A food worker washes his hands and puts on new gloves before taking tomatoes from a box and slicing them for burgers

Answers

What the food worker, who washes his hands and puts on new gloves before taking tomatoes from a box and slicing them for burgers, has done is an example of practicing good personal hygiene.

What is personal hygiene?

Personal hygiene involves the following activities: bathing, washing hands, brushing teeth, etc.

The purpose of personal hygiene, especially for a food worker or handler is to prevent biological, chemical, and physical hazards that make food unsafe.

Thus, since food workers come into contact with millions of germs and viruses daily, they must practice personal hygiene.

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Currently the FTC and industry leaders are discussing measures to curb robocalls, or the use of autodialers to deliver a prerecorded message, further impeding the use of

Answers

There will be an impediment of telemarketing when industry leaders are discussing various measures to curb a robocalls or autodialers to deliver a prerecorded message.

What is an telemarketing?

It is a form of direct marketing because network promotes a goods or services to potential customers over the telephone or through the Internet.

In conclusion, because the industry leaders are discussing various measures to curb a robocalls or autodialers to deliver a prerecorded message, then, there will be an impediment of telemarketing.

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advise businesses on the difference between the public sector and private sector

Answers

In the public sector organizations are owned and controlled by the government. Meanwhile organizations within the private sector are owned and managed by individuals or private companies.

______________________ include both the private costs incurred by firms and also costs incurred by third parties outside the production process

Answers

Social costs include both the private costs incurred by firms and also costs incurred by third parties outside the production process. Therefore, below is a further explanation.

What are Social costs and its inclusion?

Social costs are costs that include both the private costs incurred by firms and also additional external costs incurred by third parties outside the production process.

Therefore, the answer is social costs.

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Pete has met with a group of professional investors to raise funds for his new legal research technology company, Techlaw Pros. The professional investors focus exclusively on funding technology companies in the legal field and are demanding substantial control over Techlaw Pros through sitting on the board of directors. Pete is seeking money from

Answers

Pete is seeking money from a venture capital firm by meeting with a group of professional investors to raise funds for his new legal research technology company, Techlaw Pros.

What is venture capital firm?

Venture capital firm is a private equity investor that gives the capital to those companies who have high growth and in return for an equity stake in the company.

It give preference to the startup companies or the small companies that wants to diversify their business.

Hence, Pete is seeking money from a venture capital firm by meeting with a group of professional investors to raise funds for his new legal research technology company, Techlaw Pros.

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Why is it important to have communication in a job ?

Answers

Answer:

Good communication can boost teamwork and lead to better project collaboration.

Answer:

- Good communication can boost teamwork and lead to better project collaboration. It applies to practically every industry.

- Workplace communication is important for streamlining internal communication. Maintaining effective communication ensures that management and the team below them are on the same page

- It disseminates the information needed by employees to get things done and builds relationships of trust and commitment.

- Workplace communication is vital to an organization's ability to be productive and operate smoothly.

- Workplace communication improves worker productivity.

I hope my answer helps you.

A financial institution or commercial bank that purchases a business' accounts receivable at a discount and then keeps what they collect is a(n) ______.

Answers

A financial institution that purchases a business' accounts receivable at a discount and then keeps what they collect is a(n) factor.

What is account receivable?

Account receivable is an asset and can be defined as the amount a company is expected to receive from their client  for the service they rendered to the client.

When a financial institution buy a business account receivable at a discounted price or rate by keeping the amount they collected this is tend to be known as a factor.

Therefore a financial institution that purchases a business' accounts receivable at a discount and then keeps what they collect is a(n) factor.

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Product differentiation makes the demand for a monopolistically competitive firm's product: a. perfectly elastic. b. more elastic than for a monopoly. c. more inelastic than for a monopoly. d. perfectly inelastic

Answers

The answer is C, more inelastic than for a monopoly.

What does a company do during the post-IPO stage?

a)uses proceeds to expand

b)sells stock to the public

c)files paperwork with the government

d)seeks financing from an angel investor

Answers

Answer:

A.Uses proceeds to expand.

Explanation:

Which factor would be most likely to lead to an unsuccessful IPO?

Answer is A uses proceeds to expand

At the end of 20 years, an initial investment of $10,000 grows to $51,551.70. Use the continuous compounding formula to determine the annual rate of return. Write your answer in decimal form rounded to three decimal places. Do NOT convert your answer to a percentage.

Answers

Answer:

6

Explanation:

The annual rate of retutn is 0.823.

What is compoud interest?

The mathematical formula for calculating compound hobby, A=P(1+r/n)^nt.Compound interest genuinely approach earning hobby in our savings, and also, in the end, at the hobby that those savings earn.continuously compounded interest way that an account stability is continuously incomes hobby, in addition to refeeding that interest lower back into the balance so that it, too, earns.

continuous compounding is similar in idea to annual compounding, besides the compounding intervals are infinitely small. even though the yearly compounding system can be without difficulty changed to accommodate smaller durations.

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The two most common pricing alternatives for products in the introduction stage of the product life cycle are:.

Answers

Answer:

penetration pricing and skimming pricing

List some of the things that you believe that are affecting businesses and our economy:​

Answers

Answer:

I believe that the pandemic is what is affecting our businesses and economy

Fidelity investments is one of the largest mutual fund and brokerage services providers worldwide. it has various offices in cities across the united states. in each office customer, contact personnel have a well-groomed, professional appearance. the inside of the office is clean and attractive. these visible cues are an attempt to deal with the problem of _______ common to service organizations

Answers

These visible cues are an attempt to deal with the problem of trust common to service organizations. Hence, the purpose of these cues is to generate much trust from the customers.

Common Customer Service Problems

The following are the common customer service problems encountered by the customers:

Long time in responseImpatience on the part of the Customer representative to Listen to the Needs of the customerCustomer Transfer from one department to anotherRudeness on the part of Customer Service agent towards the ClientsInability to offer a solution to the CustomerInability of the Customer Service agent to fulfil Promises.

Therefore, these cues are in place to earn trust from the customers.

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When creating video marketing content on a budget, what is the first thing you should consider doing?

Answers

Answer:Shooting as much as you can and culling it later

Explanation:

What is the primary purpose of a trading bloc? (5 points) group of answer choices to foster political and social unity to lower manufacturing costs to reduce or eliminate tariffs to create free market economies

Answers

The primary purpose of a trading bloc is to reduce or to eliminate the tariffs. Option C is correct.

What is the trading blog?

A trading bloc is a kind of intergovernmental agreement, frequently part of a regional intergovernmental organization, in which trade restrictions between participating governments are decreased or totally abolished.

Trade blocs can arise as independent agreements between states or as part of a regional organization. The fundamental purpose of that type of blog is to reduce or eliminate the tariff.

Therefore, option C is correct.

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How many gallons of oil does the us have in reserve.

Answers

Probaly around 138 gallons in total

Answer:

43.8 billion barrels

Explanation:

Other Questions
An instrument that uses the sun as its source of energy is termed? Memories of a MemoryHave you ever witnessed something amazing, shocking or surprising and found when describing the event that your story seems to change the more you tell it? Have you ever experienced a time when you couldn't really describe something you saw in a way that others could understand? If so, you may understand why some experts think eyewitness testimony is unreliable as evidence in scientific inquiries and trials. New insights into human memory suggest human memories are really a mixture of many non-factual things.First, memory is vague. Imagine your room at home or a classroom you see every day. Most likely, you could describe the room very generally. You could name the color of the walls, the floors, the decorations. But the image you describe will never be as specific or detailed as if you were looking at the actual room. Memory tends to save a blurry image of what we have seen rather than specific details. So when a witness tries to identify someone, her brain may recall that the person was tall, but not be able to say how tall when faced with several tall people. There are lots of different kinds of "tall."Second, memory uses general knowledge to fill in gaps. Our brains reconstruct events and scenes when we remember something. To do this, our brains use other memories and other stories when there are gaps. For example, one day at a library you go to quite frequently, you witness an argument between a library patron and one of the librarians. Later, when telling a friend about the event, your brain may remember a familiar librarian behind the desk rather than the actual participant simply because it is recreating a familiar scene. In effect, your brain is combining memories to help you tell the story.Third, your memory changes over time. It also changes the more you retell the story. Documented cases have shown eyewitnesses adding detail to testimony that could not have been known at the time of the event. Research has also shown that the more a witness's account is told, the less accurate it is. You may have noticed this yourself. The next time you are retelling a story, notice what you add, or what your brain wants to add, to the account. You may also notice that you drop certain details from previous tellings of the story.With individual memories all jumbled up with each other, it is hard to believe we ever know anything to be true. Did you really break your mother's favorite vase when you were three? Was that really your father throwing rocks into the river with you when you were seven? The human brain may be quite remarkable indeed. When it comes to memory, however, we may want to start carrying video cameras if we want to record the true picture.Which word from the text best describes memories of places? Vague Familiar Individual Remarkable (30 points! pls help) Determine the length of AB. Write your answer in simplest form. 5, 2, 10, x There are 8 red marbles, 2 green marbles, and 5 blue marbles in a bag. Marbles are replaced after each draw. What is the probability that the first marble drawn is red and the second marble drawn is green? What can you infer about magnetic domains from the fact that they are arrangements of atoms?. The formula for a ciprofloxacin otic dropquantity of each ingredient required to is given in the literature as follows10:make 1500 g of the powder. Ciprofloxacin 1 gCalcium Carbonate Propylene Glycol 5 parts 50 mLMagnesium Oxide Glycerin qs ad 1 part 100 mLSodium Bicarbonate 4 parts How many grams of ciprofloxacin Bismuth Subcarbonate 3 parts would be required to prepare 200 15-mL What does the standard deviation of a set of data tell you?O A. The smallest data valueB. Whether the data are spread out or notO C. How many data points there areO D. 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