What are institutional voids

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Consider the readings from Khanna and Palepu, Anaya et al., World Bank, Porter etc.. Free Markets are closely associated with economic freedom and a capitalist political philosophy. Similarly, few economists think that there are strong economic motivation for impediments to trade. Moreover, most firms embrace attitudes favorable to free trade.

LINK TO READINGS BELOW

1. Why do so many politicians advocate for trade barriers, especially since they are so costly to society? What are their motives for pushing for policies that defy economic logic.

2. Who benefits from such politicking? What are the costs to society? Is it fair that consumers pay the price of protectionism?

3. What are "institutional voids". Is there a relationship between institutional voids and other characteristics, such as GDP, culture etc... in a particular society? What might explain these relationships?

Reference no: EM133025217

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