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tresset_1 [31]
4 years ago
9

Government corruption:

Social Studies
1 answer:
Talja [164]4 years ago
8 0

Answer:

The answer is C.

Explanation:

Government corruption impedes the coordinating activity of markets because it can inflate the costs of businesses and therefore separating them from competition. This produces a rupture within the market because competitive forces are misaligned, and thus the market will not be able to control prices. Consequently corruption also discourages investment, since trust is the key factor in deciding where to invest. If the market is uncoordinated and business are not transparent, investors are unlikely to put money in the business or country, if the government is corrupt.

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