Comparative Political and Economic Systems Map (Essay Sample)

USA
The USA is a North American country with an estimated population of 330,370,957 as of September 29th 2020. (Population Clock, 2020) It is the third most populous country in the world with its population consisting of people of diverse race and ethnicity. The USA is a representative federal democratic state, with its political system comprising two major political parties; democrats and Republicans. The country however, has recently been hit with civil rights protest against systematic racism, discrimination and police brutality. This has projected the USA as a politically polarized democracy on the issue of racism and equality. (Kleinfeld, 2020) The country has an open capitalist economic system that operates on a free market system and promotes pluralism.Its economic system is an advanced mixed economy. It has registered robust economic growth over the years, registering a $ 21,428 billion GDP income in 2019, 2.3% economic growth, $ 65,076 per capita income, 3.7% unemployment rate and 1.8% inflation rate. (FocusEconomics, 2020) The e-commerce industry in the USA has experienced tremendous growth over the past decade, generating an estimated $343.15 billion in 2019. This figure is projected to reach $476.5 billion by 2024. (Clement, 2020) Therefore, e-commerce would be the most suitable business to run in the USA.
Brazil
Brazil is a South American Latin country with an estimated population of 212,929,158, ranking 6th in population globally. (Worldometer, 2020) The country has one of the most diverse populations in the world. Brazil is a democratic state running on a multi-party political system, with the country having more than dozen political parties. In the five-year period between 2014 and 2019, Brazil averaged a risk factor index of 4.5, which is considerably high. (theglobaleconomy, 2020)One of the factors attributable to such a high risk factor index is the rate of corruption in the country’s political scene, following the “car wash” scandal. Brazil has a relatively closed economic system. Recent macroeconomic indicators being on the rise since the 2014 recession. In 2019, Brazil had a GDP of $ 1.839 trillion, per capita income of $8,760, an economic growth rate of 1.1%, unemployment rate of 11.9% and an inflation rate of 3.7%. (FocusEconomics,2020) Brazil is rich in natural resources such as iron, copper, bauxite and diamonds and is also an agricultural giant, therefore, a mining or agricultural based business would be suitable in the country.
Russia
Russia is an Eastern European country containing an estimated population of 145,949,954 people, making it the 9th most populous country globally. Following the collapse of the communist Soviet Union in the 1990s, Russia assumed a democratic stance of governance. However, it failed to institute the necessary economic and social reforms required of a democracy, by according the former communist leaders the task to spear-head that transition. It is widely perceived that the transition to democracy wasn’t successful. (Evans, 2011) Russia is heavily flawed with systemic corruption with there being an unnatural interaction between the public and private sector, thereby, creating a toxic environment for FDIs. (LIUHTO, 2010) the country has a mixed economic system , with controversially free markets. In 2019, Russia’s economy had a GDP of $ 1,700 billion, per capita GDP of $ 11,583, economic growth rate of 1.3%, unemployment rate of 4.6% and inflation rate of 4.5%. Owing to its abundance in oil reserves, a petroleum mining, refinery or petroleum products business would be suitable in Russia.
India
India is an Asian country and the second most populous country with an estimated population of 1,380,004,385 people. (worldometers, 2020) India has a federal system of government that is democratic , consisting of an elected president and a prime minister. Between 2014 and 2019, India had an average political risk factor of 2. This is due to excessive bureaucracy due to the size of government and corruption. In the 1990s, India began its transition from a closed economy to an open market economy following the collapse of the USSR. During the 2019 financial year, it recorded a GDP of $ 2,875 billion, per capita GDP of $ 2,130, an economic growth rate of 4.2%, an inflation rate of 4.8% and an unemployment rate of 5.36%. (worldbank, 2020) Due to the abundance of labour force, manufacturing business would be suitable in India.
China
China is an Asian country, with a population of 1,439,323,776 people making it the most populous country globally. (worldometers, 2020) China is a fully authoritarian state with a single political party exercising total control over the government, its people and institutions. The Chinese government’s totalitarian rule creates an uncertain situation about future trade, especially with increased social unrest and political demonstrations against the government. Retaliatory actions against the people could disrupt supply chains and destabilize the market. (Bremmer & Zakaria, 2006) china has a socialist economic system that involves a blend of capitalism and communism. China is an open economy despite the state controlling all factors of production. In 2019, the GDP of China was $ 14,298 billion, per capita GDP was $ 10,212, economic growth was 6.1%, The unemployment rate was 3.6% and the inflation rate was 2.9%. due to the availability of market, labour and a good per capita GDP, then a retail business would be ideal.
France
France is a European country with a population of 65,309,161 people. It has a democratic political system where the president is elected. There is a tradition in France that involves government intervention in the French social system in support of the French Republican Model. This constitutes a political risk that investors need to understand. France has an open market economic system, with 63.4% of its GDP comprising exports and imports. (heritage, 2020)In 2019, France had a GDP OF $ 2,427 billion, a per capita GDP of $ 37,440, an economic growth rate of 1.5%, unemployment rate of 8.5% and inflation rate of 1.3%. France has a lucrative tourism industry, therefore, the most ideal business to start is a travel and tour firm.
Hungary
Hungary is a Central European country with an estimated 9,654,248 people. The country’s political system involves a democratically elected president and a prime minister. Re-election of the prime minister Viktor Orban and his conservative Fidesz party, with a majority of seats in parliament creates friction with the European Union. This is a risk factor for potential investors. (Coface, 2020) Hungary has as Small, but open economic system. In 2019, Hungary had a GDP of $160.967 billion, per capita GDP of $16,1140, GDP growth of 4.9%, inflation rate of 2.301% and unemployment rate of 3.4%. Hungary has an active tourism and agricultural industry, therefore, a fruit processing business would be ideal.
Peru
Peru is the third largest South American country with an estimated population of 33,084,102 people. The Peruvian government is a democratic multi-party one. The political temperature in Peru is escalating following the attempted impeachment of the president by congress. This is a potential risk factor since an unstable political environment is not good for business. Peru runs on an open economic model, instituting structural reform that increase the competition and freedom of the market, leading to steady growth in the country’s GDP gradually, hence attaining a GDP of $226.848 billion in 2019, a per capita GDP of $7060, a GDP growth rate of 2.2% and inflation rate of 1.556%. Peru has a strong mining industry of copper and gold and therefore the suitable business is a mining or mineral processing firm.
Nigeria
Nigeria is a democratic federal African country with an estimated population of 207,362,394 people. The president is elected in an electoral process. Despite being Africa’s leading country by population and GDP, Nigeria faces internal challenges such as the Boko Haram terrorist group and the persistent conflict between pastoralists and farmers, which is threatening its food security. The economy however runs on an open market but mixed market model and registered a GDP of $448.12 billion in 2019, an increase from $398.16 billion in 2018. It also recorded a per capita GDP of $ 2,363, an inflation rate of 10.385%, GDP growth rate of 2.208% and unemployment rate of 8.1%. (Worldbank, 2020) Nigeria is a growing hub for telecommunication and mining, therefore, a telecommunication firm or a petroleum products processing firm would do well.
The Democratic Republic of Congo
The DRC is a central African country with an estimated population of 89,561,403 people. It is a struggling democracy, having just had its first multi-party elections in 2006, after which Joseph Kabila clung on to power until 2019. The political system of the DRC is severely flawed with heightened corruption in government institutions, a barely functioning legal system and constant political instability and militia violence. It ranks 162nd globally in economic freedom, with a score of 49.5. The DRC has rich natural resources but their exploitation is conducted by the elite few with the majority of the citizens living in extreme poverty. (Heritage, 2020) The rate of unemployment is 4.2%,while the rate of inflation is 29.3%. The GDP is $72.9 billion with a growth rate of 3.9% and $767 per capita. With reforms to improve economic freedom and political stability, a transport and logistics business would flourish there.
Saudi Arabia
It’s a Southwest Asian kingdom with an estimated population of 34,945,966. The system of gov...