A lack of trust between two parties engaged in international trade is exacerbated by the
A)saturation of the domestic market.
B)similar preferences of the parties regarding how a transaction should be configured.
C)narrowing distance between the two parties due to technological advances.
D)problems of using an underdeveloped international legal system to enforce contractual obligations.
E)possibility of doing business with someone with whom they have been associated for a long time.

Question

Quizplus · Accepted Answer

A lack of trust in international trade can be worsened by the difficulties of enforcing contractual obligations through an underdeveloped international legal system. Without a strong legal framework, there is less incentive for parties to trust each other and engage in mutually beneficial transactions.

A Lack of Trust Between Two Parties Engaged in International