International Finane
Written Assignment
Q1)
Corruption percentage index is created in 1995 by Transparency International and ranks countries and territories based on how corrupt their public sector is perceived to be. A country’s score can be indicated on a scale of 0-100, with 0 perceived as being the most corrupt and 100 perceived as very clean. Past statistics has shown that UK and Mexico had a corruption index of 74 and 34 in 2012, 78 and 30 in 2011 respectively. This indicates that Mexico has a higher level of corruption than in the UK.
Corruption refers to the abuse of entrusted power of private gain. Mexico is the main supplier of marijuana to the US and is also a major trafficker of methamphetamine and heroin. The drug war in Mexico fosters corruption because it increases private gain (money) at public expense (violence). The drug war and its actors employ many forms or corruption in order to carry out illegal operations. Studies shown that average Mexican household spend 14% of income bribing government officials. Criminal organizations were reportedly spending more than $500 million a year in bribes. The prevailing patterns of corruption associated with drug trafficking and organized crime not only facilitate the illicit businesses of these organizations but also effectively handicap official state efforts to control or contain them. Corruption is not endemic in the UK, but some recent scandals involve phone hacking, corruption in cricket and controversy over political party funding.
Corruption can affect economic growth in many different ways through foreign direct investment, tax revenues, allocation of public services, the quality of goods and services, rationality of transactions. Using CPI index as a measure of corruption, research finds that less corrupt countries receive more foreign investments. Corruption can also cause financial crisis, economic downfall, and increase of turmoil in the country, poverty and deterioration of order in the country.
Q2)
Q1)
Corruption percentage index is created in 1995 by Transparency International and ranks countries and territories based on how corrupt their public sector is perceived to be. A country’s score can be indicated on a scale of 0-100, with 0 perceived as being the most corrupt and 100 perceived as very clean. Past statistics has shown that UK and Mexico had a corruption index of 74 and 34 in 2012, 78 and 30 in 2011 respectively. This indicates that Mexico has a higher level of corruption than in the UK.
Corruption refers to the abuse of entrusted power of private gain. Mexico is the main supplier of marijuana to the US and is also a major trafficker of methamphetamine and heroin. The drug war in Mexico fosters corruption because it increases private gain (money) at public expense (violence). The drug war and its actors employ many forms or corruption in order to carry out illegal operations. Studies shown that average Mexican household spend 14% of income bribing government officials. Criminal organizations were reportedly spending more than $500 million a year in bribes. The prevailing patterns of corruption associated with drug trafficking and organized crime not only facilitate the illicit businesses of these organizations but also effectively handicap official state efforts to control or contain them. Corruption is not endemic in the UK, but some recent scandals involve phone hacking, corruption in cricket and controversy over political party funding.
Corruption can affect economic growth in many different ways through foreign direct investment, tax revenues, allocation of public services, the quality of goods and services, rationality of transactions. Using CPI index as a measure of corruption, research finds that less corrupt countries receive more foreign investments. Corruption can also cause financial crisis, economic downfall, and increase of turmoil in the country, poverty and deterioration of order in the country.
Q2)