In developed countries,if property rights are enforced and contracts in trade are legally respected,it is usually assumed that:

Question

Quizplus · Accepted Answer

Enforced property rights and legally respected contracts in trade create a more stable and predictable business environment, which encourages investment by both domestic and foreign investors. It reduces the perceived risk associated with investing in the country, resulting in increased economic growth and development. However, transaction costs will not be zero, and some level of government intervention may still be necessary to ensure fair competition and prevent market failures.

In Developed Countries,if Property Rights Are Enforced and Contracts in Trade