Markets and Opportunities.
From the legal or moral perspective people have formal and informal contracts regarding their behavior. Check for example the constitution and private law of your country regarding simple issues like basic rights, capacity for rights and legal actions, law of contracts, substantive law or family law. Now imagine that every country has other legal provisions and sociocultural segments. For example: If you prefer polygamy, you have to move, where it is allowed. In other words you have to rank your priorities and make trade offs. The question is, if the country of your nationality accepts this, even abroad. Of course not all possible behaviors can be codified in laws, that is why they argue with abstract contracts.
The same if you are a company. Of course you want to minimize costs or maximize revenues. So you have to check and combine the legislations of the countries involed in your business model. Now imagine the multitude of private, company, monetary and tax laws to be compared, not to forget unwritten laws. Imagine you are an investor, and find out, that there is a growing legal accepted market somewhere for polygamy products and rituals. If you don’t have moral constraints and are able to research databases you invest there, the consent of the country of your nationality provided.
In order to avoid conflicts there are regional and international rules to be considered or not. If you have a look at the history of mankind, you know that all conflicts of the world have their roots in morals, deciding about allocation of factors and distribution of products.
Psychological View: Resume
Economical View: Contract Theory, Theory of the firm
Legal View: Rome I, Contractual Obligations, Rome II, Non Contractual Obligations, Agreements on Jurisdiction
The relevant Nobel Prize for Economic Sciences went 2016 to Oliver Hart and Bengt Holmström.
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