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Answer: it lessens the unpredictability that makes investing more risky.
Explanation:
The rule of law is a principle which simply means entails that all economic agents are accountable to law.
Businesses prefer to build factories in countries with the rule of law because it lessens the unpredictability that makes investing more risky. This is vital in ensuring accountability and checkmating the behavior of people.
During 1989 and 1990, the Berlin Wall came down, borders opened, and free elections ousted Communist regimes everywhere in eastern Europe. In late 1991 the Soviet Union itself dissolved into its component republics. With stunning speed, the Iron Curtain was lifted and the Cold War came to an end.
Answer:
Solutrean Hypothesis, Hope this helps :]
