The Likelihood That a Trading Partner Will Opportunistically Break a Contract

question 35

Multiple Choice

The likelihood that a trading partner will opportunistically break a contract or expropriate property rights is called a(n)

• A) economic risk.
• B) legal risk.
• C) cultural risk.
• D) political risk.

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Definitions:

Classical Conditioning

A learning process in psychology where an automatic conditioned response is paired with a specific stimulus, originally discovered by Ivan Pavlov.

Law of Effect

A psychological principle stating that behaviors followed by positive outcomes are likely to be repeated, while those followed by negative outcomes are less likely to be repeated.

Negative Reinforcement

The process of increasing desired behaviors by removing or avoiding a negative stimulus.

OB Mod

Stands for Organizational Behavior Modification, which is a technique used to improve productivity and behavior in the workplace by applying principles of behavioral psychology.