Economics Today and Tomorrow, Student Edition
Economics Today and Tomorrow, Student Edition
1st Edition
ISBN: 9780078747663
Author: McGraw-Hill
Publisher: Glencoe/McGraw-Hill School Pub Co
Question
Book Icon
Chapter 19.3, Problem 1R
To determine

To state the importance of bureaucracies and capital flight.

Expert Solution & Answer
Check Mark

Explanation of Solution

The significance is explained as under:

Bureaucracies: It is a major part of any government. For the purpose of expert guidance & knowledge in working the administration & for the quality life of the civil services, they play a major role. Bureaucracies handle all the paperwork of the governmental operations such as issuing permits, licensing facilities, etc & they lead the smooth working of the economies.

Capital flight: It is important as it is the assets & capital transferred from the nation due to several reasons such as instability in the economy or currency devaluation which does not result in tax penalties. Moreover, this helps in gaining from such transfers by buying gold or foreign currencies overnight.

Knowledge Booster
Background pattern image
Recommended textbooks for you
Text book image
ENGR.ECONOMIC ANALYSIS
Economics
ISBN:9780190931919
Author:NEWNAN
Publisher:Oxford University Press
Text book image
Principles of Economics (12th Edition)
Economics
ISBN:9780134078779
Author:Karl E. Case, Ray C. Fair, Sharon E. Oster
Publisher:PEARSON
Text book image
Engineering Economy (17th Edition)
Economics
ISBN:9780134870069
Author:William G. Sullivan, Elin M. Wicks, C. Patrick Koelling
Publisher:PEARSON
Text book image
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Text book image
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning
Text book image
Managerial Economics & Business Strategy (Mcgraw-...
Economics
ISBN:9781259290619
Author:Michael Baye, Jeff Prince
Publisher:McGraw-Hill Education