It’s a city state.
Explanation
I believe it is the last option... "Its political system cannot be easily changed.
It's been awhile since studied the French revolution, but I thought it had something to do with the French army using it to store weapons and ammo
If your friend is a business owner in a planned economy, then it would be the "central government" that decides how to allocate the productive resources he uses, since the government "plans" the economy as opposed to having supply and demand take place in the marketplace.