State of Freedom and Political Risks Quiz

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Questions and Answers

What moderates practical and strategic aspects of business operations according to the text?

  • The legal system (correct)
  • Market demand
  • Economic policies
  • International trade agreements

In business contracts, what provision allows companies to resolve potential disputes outside of court?

  • Choice-of-law clause (correct)
  • Legal jurisdiction
  • Marketplace behavior clause
  • Product origin clause

What governs dispute resolution in contracts according to the text?

  • Market behavior regulations
  • Intellectual property laws
  • Choice-of-law clause (correct)
  • Legal jurisdiction

What affects the flow of products across borders according to the text?

<p>National laws (C)</p> Signup and view all the answers

Which legal system relies on religious doctrine, precepts, and beliefs?

<p>Theocratic law system (C)</p> Signup and view all the answers

In which legal system are political officials responsible for translating legal principles into regulatory statutes?

<p>Civil law system (A)</p> Signup and view all the answers

Which type of legal system uses case law in resolving disputes?

<p>Common law system (D)</p> Signup and view all the answers

Which type of legal system reflects the wisdom of daily experience and enduring spiritual legacies?

<p>Customary law system (D)</p> Signup and view all the answers

What is the meaning of political risk as described in the text?

<p>The possibility that political decisions negatively affect a country's business environment (D)</p> Signup and view all the answers

What are some factors impacting political risk as mentioned in the text?

<p>Arbitrary laws and corrupt regimes (A)</p> Signup and view all the answers

Which type of political risk involves ethnic conflict, illegitimate regime change, and civil disorder?

<p>Catastrophic (A)</p> Signup and view all the answers

How do arbitrary laws and corrupt regimes contribute to political risk?

<p>They fuel uncertainty and increase the likelihood of adverse impact on businesses (A)</p> Signup and view all the answers

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