Both Germany and Finland, among a large number of other nation states, have far

Question

Both Germany and Finland, among a large number of other nation states, have far more government regulations of business and much higher tax rates than does the United States. (The U.S. tax burden on its citizens ranks a quite low 215th among the world's countries.) Yet, both Germany and Finland among a large number of countries have higher rates of growth in GDP since 1995 than does the U.S. What does this reveal to you? (IMPORTANT hint: This has nothing (!!) at all to do with the size or scale of the respective economies.)

Explanation / Answer

A country’s favoritism for business doesn’t solely depends on the government tax rules but on many other factors as well. Though US might have less tax as compared to Germany and Finland but is the companies find it easy to set a factory in US than in those countries.

Let’s see some key points on which a possible country is chosen for doing business

These countries uses technology to their aid along with less cost of production due to economies of scale to leverage profit. This results in larger cash transaction and rotation of money in market. People have more money and thus have higher purchasing power and in turn this helps in too many transaction.

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