Question: (1) Why have some countries chosen to be democratic while others prefer to be socialist? Why is this differentiation so important in international trade? (2)

(1) Why have some countries chosen to be democratic while others prefer to be socialist? Why is this differentiation so important in international trade?

(2) Why do the political and legal institutions reflect the cultural and social norms of the society? Is this important in establishing stability in a country?

(3) Do you think it is possible to achieve economic development in the developing countries without their having to sacrifice some local autonomy? (4) Suggest some areas of potential conflict between MNEs and host nations. Can you suggest how MNEs can overcome potential conflicts or minimise them? (5) Do you believe that countries that profess to support free trade should also encourage direct foreign investment, with the minimum of government interference?

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