Question

Which of the following is a more attractive place to do business? Multiple Choice A nation that lacks democratic institutions A nation where economic activity is regulated by the state A nation with a market-based economic system A nation where the rule of law does not take precedence over business

Answer 1

Answer: A nation with a market-based economic system

Explanation:

Market economies are generally considered the best places to do business because the competitive nature as well as minimal Government interference gives companies the opportunity to make profits if they are efficient enough.

A company that lacks basic democratic institutions will be shunned because the Government can impose unilateral decrees that could be harmful to business and people would be unable to go against them. The same goes for a nation where economic activity is regulated by the state.

And a nation where the rule of law does not take precedence over business could lead to unfair competition so the Market based economy is the best to do business in.