Question

thinking back to why Nations Fails and considering the global capitalism article, why is it a problem that only 147 of the world's corporations and investment groups control 40% of the world's corprate wealth?

a) political power follows economic power in the vicious circle.

b) global capitalism is innately democratic.

c) this is a low percentage, which means that it is inclusive

d) corporations are not nationstates, so they can not be extractive

Answer 1

The correct option is A

Politic power follows economic power in a vicious circle

Explanation.

This is because the political power influences that small no. Of institutions and corporations by a Large extend by incorporating the policies , and laws that resukt in the concentration of power in few hands. And the main reason behind why the nation fails has always been the concentration of power in the hands of few making the rich richer and poor more poorer.

This trend has grown so much that in today's economy this small percentage of businesses have become dominant in controlling a major portion of the world trade through the influence and power they undertake through the support of political influence.

Since the control of wealth and power has always been significantly in the hands of the political groups , who try to restrict the healthy competition and innovation inorder to not let the power get decentralized to the other sectors.

The ruling elites in these nations don't let each region to share the power and prosper, with the fear of losing control. Thus creating a hurdle in the progress of each region , resulting in failing of nation. The huge risk is that if this small power concentrated sect faces any downs , it can make the whole economy sink in the abyss of no return.

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