The Enterprise Surveys conducted by the World Bank examine the investment climate in a wide range of countries undergoing social transformation. You have been asked to develop a report that analyzes corruption and black-market practices in different countries. A coworker recently indicated that one proxy for this is the level of informality that firms use in reporting sales amounts for tax purposes. Identify the top three transition economies in which reported sales are most similar to actual sales amounts. Which three countries have the lowest reporting of sales amounts for tax purposes? Why do you think these three countries have the lowest reporting of sales amounts for tax purposes? (
1 answer
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