Wealth of Nations Country Data Heritage Foundation Scoring Criteria

Property rights  land ownership, personal goods, ideas, inventions, and wealth.  Does the country have laws that protect property rights?  Does the government enforce those laws?  Protected ownership  incentive to accumulate wealth

 How easy is it to start, operate, and close a business? Ease of entry  growth Less regulations  ease of production  growth USAIncorporating a business takes five days on average, but the overall cost of meeting regulatory requirements has increased by over $60 billion since 2009, with more than 130 new regulations imposed. Hong Kong business start-up process is straightforward, with no minimum capital required FranceNo minimum capital requirement for launching a firm ChinaIt takes 13 procedures and over a month to launch a business. Completing licensing requirements remains time-consuming and costs over three times the level of average annual income.

 How much are people and firms taxed?  Less taxes  more incentive to work and produce Tax Income Structures and Rates Overall Tax Burden USAProgressive10 – 39.6%21.5% Hong KongFlat15%14% FranceProgressive44%44.2% ChinaProgressive45%19%

 Existence of trade restrictions?  Are outside investors encouraged to invest in your country? FDI Flow – Foreign Direct Investment. Average Tariff RateTrade Barriers USA1.3% Hong Kong zero tariff rateminimal non-tariff barriers France1.1 percent (EU Standard) few non-tariff barriers to trade. China4.1%layers of non-tariff barriers add to the cost of trade

True/False Statements  Nothing is absolute….mostly true or mostly false.

Forms of Government Autocracy Monarchy = the head of state is a king or queen  Absolute  Constitutional Republic = the government's authority comes from the people Direct Democracy Representative Democracy Systems of Government Power Within Levels of Government Presidential Systems - the legislative and executive branches are separate and independent of each other. Voters elect the President and member of Congress. Parliamentary Systems - the chief executive is chosen by the legislature/parliament Voters elect members of Parliament, who then elect the Prime Minister