Economies of Different Countries

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Question-3

Mention latest changes in economies of different countries whose classification is on the following basis:

Advanced economies: post-industrial countries characterized by high per-capita income, highly competitive industries, and well-developed commercial infrastructure. E.g. Australia, Canada, Japan, United States and Western European countries.

Developing economies: low-income countries characterized by limited industrialization and stagnant economies. E.g., most low income countries in Africa, Latin America, and Asia, such as Bangladesh, Nicaragua and Zaire. Emerging market economies: a subset of former developing economies that have achieved substantial industrialization, modernization, improved living
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Other taxes include value added tax (VAT) and property tax, with the overall tax burden totaling to 31.1% of total domestic income. Government spending has increased to over 40% of total domestic output. Budget deficits have widened, and public debt has risen.

| Score | Increase/Decrease from Last Year | Government Spending | 41.7 | Decreased | Fiscal Freedom | 79.2 | Increased |

Regulatory Efficiency

The regulatory framework is highly conducive to formation and operation of business, with no requirement of minimum capital to start a company. The average cost for obtaining necessary licenses has been cut almost to half. Flexible labor regulations enhance employment and growth in productivity. There has been modest inflation, but the government controls all prices of health care services virtually through its mandatory “single player” nationalized program.

| Score | Increase/Decrease from Last Year | Business Freedom | 96.6 | Increased | Labor Freedom | 81.8 | Increased | Monetary Freedom | 77.3 | Decreased |

Open Markets

The trade regime of Canada is very competitive, with low tariff or non-tariff barriers facilitating dynamic gains from free trade. The flexibility and openness of Canada strongly sustain the efficient and dynamic investment environment. The global financial turmoil has been weathered by prudent banking sector with no need for considerable injections or bailouts of state funds. The “six big” domestic banks
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