Which of the Following Is True of Regulations Governing International

question 49

Multiple Choice

Which of the following is true of regulations governing international business?

• A) Those countries with complicated laws tend to be wealthy.
• B) When countries improve their laws, they likely open up more opportunities for business in the country.
• C) There is a low correlation between efficient, effective regulation and the wealth of a nation.
• D) Countries can attract foreign investment by nationalizing their industries.

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Definitions:

Regulatory Capture

A situation where regulatory agencies are dominated by the interests of the industries they are supposed to regulate, rather than serving the public interest.

Special-Interest Effect

The scenario where a small group gains significant benefits from a public policy or action, often at the expense of the larger population.

Lobbyists

Individuals or organizations that attempt to influence governmental policies and decisions in favor of a specific cause or interest they represent.

Bundled Choice

Offering multiple products or services together as a single combined package, often at a reduced price compared to purchasing each item separately.