The three groups of countries described in this chapter can be contrasted in terms of degree of economic freedom. Economic freedom refers to the extent to which economic activities in a nation can take place freely and without government restrictions. The Heritage Foundation provides an Index of Economic Freedom (www.heritage.org) that considers such factors as trade policies, extent of government intervention, monetary and fiscal policies, inward foreign direct investment, property rights, and infrastructure for banking and finance. Countries are classified into categories such as free, mostly free, mostly unfree, and repressed. How are emerging market and developing economies classified? What is the relationship between market liberalization and economic development? How might market liberalization contribute to reducing poverty in developing economies?