Business comparison between two countries with deferent economic and political background.
There is quite a distinct difference between the two countries. Country A seems to experiencing a lot of economic problems that are compared to country B, Its political status is higher than that of B. On the other hand, Country B seems to be experiencing a lot of political instability than country A since the leaders are jailed, No elections, TV and radio stations controlled by the government which does not give its citizen freedom to exercise what they want. But in contrast with Country A, Country B is experiencing good economic status. The economy of country B is more stable than that of A, since the government in country B is more focused on giving education to its citizens as compared to country A where government investment in education and physical capital is low.
Country B uses quite a number of ethical advantages that it posses when a firm invests in it First, By investing in company B, The government can greatly benefit due to tax that is levied in the firm which improves the economic status of the company. By use of the tax levied from there firm, the government can have the budget of the country. Therefore, the government can have more money to invest since more learned individual will be produced as a result of increased budget allocation on education which is facilitated by the tax levied from the firms established in country B.
The citizen of this country greatly benefit, since by establishment of the firm in their countries, it provides job opportunities to the citizens who have great experience because the government has equally invested on their education. By establishing a firm in country B, the firm can be the loser hence the government benefits. This is because by investing in this country, the firm is greatly taking chances since the political situation is poor and one is not aware of what will happen to the firm in future likewise investors cannot invest in the firm due to the fear of political instability of this country. Therefore, the country can end up collapsing due to lack of investment.
In country B, the civil rights and democracy are restricted which make its citizen not to exercise their civil rights in constructing their business.