Summary

The paper by Manfred Perlitz discusses the managerial challenges posed by the absence of a stable legal system ("rule of law" - "Rechtssicherheit"). He uses as main criteria the "enforceability" and written character of law. In his view - reflecting probably the consensus of management sciences - the absence of a stable and suitable legal system is a disincentive for trade and investment. Such disincentives can be overcome (only) in countries presenting very attractive business opportunities, but requires the application of a number of risk management techniques, many of ...