In: Economics
It is very easy to start a corporation in the United
States. Take a look at how easy it is to start a corporation
in Azerbaijan or China. Do you believe there is a link between ease
of starting businesses and overall economic
efficiency?
Countries and easiness to start new business
The United States rank 6 in the easiness of doing business in the
year 2018-2019. There are no barriers for an individual or a group
to form a corporation and start producing there in the US. The
government does not restrict anything on to start something new
there. Also, there is no difference for a native or a foreigner
start a new business there in US.
China and Azerbaijan made the ranking as 31 and 38 respectively in
the year 2018-19. When compared to US, both the nations are not
that efficient to support a new corporation. Even though there are
no much restriction for starting industry there in China and
Azerbaijan, it is somehow higher when compared to that of US. The
pressure of inflation in Azerbaijan is a reason that restricts
inviting producers there even if the government support is very
high. China being a tycoon for producers even holds some measures
that force the producers or investors to follow so that they could
be invested or start a new corporation there.
The less restriction to start business will surely attracts the
investors and producers which helps the economy to be better
efficient. Even the low cost of production in China and other
nations are an advantage for them, the restrictions even if small
will pull back investors and producers to approach the economy. But
US being able to provide quick access for starting new corporations
and providing investors better exemptions, people will be more
interested in investing and producing there. And this is a major
element that stimulates the economic activities.