Sometimes excessive regulation can even make entrepreneurship impossible by limiting or prohibiting market entry in certain economic sectors through strict licensing controls. Licenses and licences can be considered non-competitive agreements. Overregulated markets can transform potentially productive entrepreneurs into non-productive, asset-creating activities. And because there are many potential markets for high-tech innovation around the world, innovative companies, discouraged by over-regulation of one market, can turn to another market. Eighteen nations have a higher GDP per person than the United States, but that does not make them powerful. Most of them are either financial centres, oil-exporting countries, or both. Norway and Bermuda, for example, have a higher GDP per capita, but they are not the engines of the global economic engine like the United States. Although China is the world`s largest economy, its GDP per capita was only $18,200. It is not an economic power if it cannot create a high standard of living for its inhabitants. The author thanks an anonymous arbitrator and IZA World of Labor editors for many useful suggestions on previous projects.
In many countries, a single aborted business effort refers to a person losing for life. Experience to the contrary in the United States, where it is easier to give entrepreneurs a second chance, even after a bankruptcy, shows that destigmatizing failure is essential to the development of a rich corporate culture. The creation of such a culture also reduces the fear of failure, which remains the main obstacle to entrepreneurship. Sixth, the agreement contributed to government spending. Government contracts for each country have been made available to suppliers in the three member countries. This has increased competition and reduced costs. “Brainly has become one of the largest learning communities in the world and is achieving significant organic growth in more than 35 countries,” Said Vinit Sukhija, a partner at Learn Capital, in a statement. Third, THE stronger growth of NAFTA has created jobs.
According to a 2010 report, U.S. free trade agreements – the lion`s share came from NAFTA – directly supported 5.4 million jobs, while trade with those countries unlocked 17.7 million.