Other things being equal, a nation with democratic political instituti

QUESTION

Other things being equal, a nation with democratic political institutions is clearly more attractive as a place in which to do business than a nation that lacks democratic institutions.

Indicate whether the statement is true or false.

ANSWER

TRUE
Other things being equal, a nation with democratic political institutions, a market-based economic system, and strong legal system that protects property rights and limits corruption is clearly more attractive as a place in which to do business than a nation that lacks democratic institutions, where economic activity is heavily regulated by the state, and where corruption is rampant and the rule of law is not respected.