Question

Because of ineffective legal enforcement of private property rights, entrepreneurs have to acquire political and administrative...

  1. Because of ineffective legal enforcement of private property rights, entrepreneurs have to acquire political and administrative protection or depend on ___________for security.

    A.

    Attorneys

    B.

    Domestic governments

    C.

    Tariffs

    D.

    Informal networks

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Answer #1

D- Informal networks

Factors related to weak rule of law such as corruption, and the effectiveness of the legal system in enforcing contracts act as barrier to entrepreneurship. A lack of mechanisms related to the protection of intellectual property and discouraging monopolies and unfair trade practices also hinder entrepreneurship.

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