How country political system affect international business, Other Management

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How country political system affect international business

Question 1: How can the political, economic and legal system of a country affect international business operation?

Question 2: The country Autarka does not allow international trade. In Autarka, you can buy a wool suit for 3 ounces of gold. Meanwhile, in neighboring countries, you can buy the same suit for 2 ounces of gold. If Autarka were to allow free trade, would it import or export wool suits? Why?

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