Which Type of Contract Depends on Trust and Loyalty

question 84

Multiple Choice

Which type of contract depends on trust and loyalty?

• A) relational contract
• B) transactional contract
• C) financial contract
• D) concrete contract

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Definitions:

Liability of Foreignness

The challenges and costs associated with operating in a market outside of a company's home country, including cultural differences and unfamiliar regulatory environments.

Import Tariffs

Taxes imposed by a government on goods and services imported into a country, used to control trade and protect domestic industries.

Global Demand

The total demand for a product or service across all countries and regions around the world.

Liability of Foreignness

This concept describes the challenges and additional costs that companies face when entering and operating in foreign markets, as opposed to their home countries.