Explain (rule-based governance)and(relationship - based government) give some example.

Case Study The developed nations of the world operate under governance systems that are quite different from those used by developing nations. The developed nation and the business firms within them follow well-recognized rules in their dealings and financial reporting. To the extent that a country's rules force business corporations to publicly disclose in- depth information about the company to potential shareholders and others, that country's financial and legal system is said to be transparent. Transparency is said to simplify transactions and reduce the temptation to behave illegally or unethically. Finland, the United Kingdom, Hong Kong, the United States and Australia have very transparent business climate while countries such as Indonesia, Venezuela, China, Nigeria, India, Egypt and Russia have the least transparent business climate. Developing nations tend to have relationship - based governance. Transactions are based on personal and implicit agreements, not on formal contracts enforceable by a court. In contrast, rule - based governance relies on publicly verifiable information, the type of information that are provided and monitored by an infrastructure based on accounting, auditing, legal cases and codes. Business people from rule-based developed nations often perceive the relationship-based system in developing nations to be less ethical and more corrupt and this perception often works as a barrier to business relationships between developing nations and developed nations. Question Explain what you think creates this perception