This question concerns much of what we will be

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Unformatted text preview: st, will this same 65/35 mix hold for the representative economy in 2015, or 2025? This question concerns much of what we will be discussing in the next section, when we talk about globalization. Countries were scored according to economic freedom on a scale of 1.00 to 5.00. The lower the score, the more economic freedom in the country; the higher the score, the less economic freedom. mixed economy An economy that is neither purely capitalist nor purely sot; an economy that has some elements of both capitalism and som. Most countries in the world have mixed economies. traditional economy An economic system in which the answers to the three economic questions are based on customs, traditions, and cultural beliefs. Section 1 Economic Systems 37 02 (030-053) EMC Chap 02 What Should I Tip? I 11/17/05 ? 4:13 PM In the United States, tipping in restaurants amounts to $16 billion a year. Even though tipping in the United States is common today, 24 percent of the individuals in one study said that they thought tipping was unfair to customers. In the past, some states prohibited tipping. For example, in the early 1900s, Arkansas, Mississippi, Iowa, South Carolina, Tennessee, and Washington passed laws to prohibit tipping. What about the rest of the world? Do people around the world have the same tipping practices as Americans do? Some do, but certainly not all. For example, it is increasingly more customary in European restaurants to have an automatic service charge added to a restaurant bill than to tip the server. Little tipping of any sort goes on in Argentina and Vietnam. Much less tipping occurs (fewer service providers expect tips) in Australia, New Zealand, and Italy than in the United States, and more tipping goes on in Mexico and Egypt than in the United States. In several studies, researchers looked at the number of different service providers (out of a total of 33) for which tipping is customary 38 Page 38 in a given country. The more service providers it was customary to tip in a country, the higher the country’s “prevalence of tipping.” For example, if it was customary to tip 31 different service providers in country A but only 15 in country B, then country A would have a higher prevalence of tipping than country B. The conclusion of these studies is that countries where success and materialism were highly valued had a higher prevalence to tip than countries where caring and personal relationships were highly valued. Also, the prevalence of tipping increased as the national need for achievement and recognition rose. In one study, tipping was more prevalent in countries with lower taxes than in countries with higher taxes. If it becomes increasingly relevant to speak of a world economy instead of hundreds of national economies, will tipping practices around the world become more the same? If they do become more similar from country to country, will countries gravitate toward more or less tipping? We do not know the answer to this question, so you might then wonder: Why ask? First, it gets us to thinking about what c...
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This document was uploaded on 01/16/2014.

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