Question

In: Economics

Explain how gangs (barrio 18 & ms13) affect el Salvador and the US. What is Nayib...

Explain how gangs (barrio 18 & ms13) affect el Salvador and the US.
What is Nayib Bukele (president of El Salvador) doing to bring more investment to El Salvador.

Solutions

Expert Solution

El Salvador is a country located near the USA.

The economy of this country is mainly based on agriculture.  

This is the developing country where the problem of Poverty is particularly prevalent.The main reason for the rise of these gangs here is the rise of the left wing against the rich and the elite group.This proves that here inequality of income exists and high level of poverty exists.The main reason behind these gangs is the presence of poverty and unemployment and inequality of income.

Various types of crimes are being carried out against children and women elite groups by them.

Both of these gangs created a situation of social and economic crisis in El Salvador. So that any company over there, The foreigner thinks before investing because there is a situation of instability in the economic.

Therefore, both the US and El Salvador jointly deployed their army there,and dare to face these. Because USA has trade surplus with this country as well as many of their companies are investing in this country.

In order to attract foreign direct investment, the President should deploy the army, take the support of USA and other types of social economic measures.

Apart from this, exemption is also being given in tax compliance and duty.There is also a big move towards good governance. So as to remove issues like corruption.

These are done directly to attract indirectly foreign direct investment.


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