Originally posted by Double Edge
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Corruption also adds to entry barriers. suppose you want to set up a factory. You would have 20 power brokers hounding you promising to either open or close doors for your based on how much you grease their palms. Aside from the ethical considerations, they would pose a significant business risk. They obviously do not have a price list, so how much you pay is based on how you negotiate. They may not actually have the power to open the doors they claim, so much of your payout would be lost. Also, if word gets out, you can be in serious trouble, especially if you are a public company.
Conclusion: corruption slows down business
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