International Finance

7 Pages 1821 Words

citizens of the United Kingdom enjoy a higher standard of living, which reflects upon a more prosperous economy equaling a greater level of Economic Freedom.
Now that you have an idea of what Economic Freedom is it is now time to examine the two countries in question and determine why one is economically free and why one is economically repressed. The Heritage Foundation ranks a country’s economic freedom. Each year the Heritage Foundation publishes the “Index of Economic Freedom.” The index lists countries economies as Free, Mostly Free, Mostly Unfree and Repressed. Countries are categorized into these fields by a point system of 1-5, 1 being free and 5 being repressed. The score of 1-5 is derived from the examination of ten different sectors of the economy. Those sectors are Trade Policy, Government Intervention, Foreign Investment, Wages and Prices, Regulation, Fiscal Burden, Monetary Policy, Banking and Finance, Property Rights and Black Market activity. Each of these sections is ranked 1-5 and the overall ranking is derived from these numbers.
Now that the ranking process has been discussed let us begin our examination of the two national economies of Iran and the United Kingdom.
The United Kingdom is ranked #7 by The Heritage Foundation as o...