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The Cato Institute's 'Economic Freedom of the World 2011 Annual Report': An Analysis

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Analysis: The Cato Institute's Economic Freedom of the World: 2011 Annual Report a)Explore the description of this survey and the ranking of the leading countries and the lesser countries of the world. This survey examines economic freedom by examining several factors that are considered essential to economic freedom, including: "personal choice, voluntary exchange, freedom to compete, and security of privately owned property" (Gwartney et al., 2011). In order to examine those factors, the researchers looked at five areas: government, property rights, access to sound money, freedom of international trade, and government regulation of finance and business (Gwartney et al., 2011). Hong Kong has the highest rating for economic freedom, followed by Singapore, New Zealand, Switzerland, Australia, Canada, Chile, the United Kingdom, Mauritius, and the United States (Gwartney et al., 2011). The countries with the least economic freedom are Zimbabwe, Myanmar, and Venezuela (Gwartney at al., 2011, Interactive map). While there are some deviations, third world countries tended to have less economic freedom than developed nations. Moreover, there is a cluster of low-ranking countries in Africa, suggesting a regional impact on economic freedom. b) What are the major factors used in this survey and Why? The five factors used in the survey are: the size of government expenditures, taxes and enterprises; legal structure and security of property rights; access to sound money; freedom

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