![](/template/termwiki/images/likesmall.jpg)
Home > Terms > Armenian (HY) > վստահություն
վստահություն
One of the most valuable economic assets, hard to create but easy to destroy - a crucial ingredient of a country's social capital. People are more likely to do business together when they trust each other. Trust can reduce market failure that otherwise results from asymmetric information. When there is a lack of trust, people may have to spend heavily on monitoring others' behavior to ensure they do what they say they will do. This cost may be so high that it is not worth going ahead with a business deal. When trust is absent, people may be less flexible in their dealings with each other. Countries can overcome some of the problems of a lack of trust by passing laws requiring good behavior, but only to the extent that people trust that the laws will be enforced. One way in which companies seek to demonstrate that they can trust is by investing heavily in a brand.
- Part of Speech: noun
- Synonym(s):
- Blossary:
- Industry/Domain: Economy
- Category: Economics
- Company: The Economist
- Product:
- Acronym-Abbreviation:
Other Languages:
Member comments
Terms in the News
Featured Terms
էլեկտրոնային առևտուր
Numerous ways that people with access to the Internet can do business from their computers.
Contributor
Featured blossaries
tim.zhaotianqi
0
Terms
40
Blossaries
4
Followers
Yamaha Digital Piano
![](/template/termwiki/images/likesmall.jpg)
Browers Terms By Category
- Hand tools(59)
- Garden tools(45)
- General tools(10)
- Construction tools(2)
- Paint brush(1)
Tools(117) Terms
- Mapping science(4042)
- Soil science(1654)
- Physical oceanography(1561)
- Geology(1407)
- Seismology(488)
- Remote sensing(446)
Earth science(10026) Terms
- General law(5868)
- Contracts(640)
- Patent & trademark(449)
- Legal(214)
- US law(77)
- European law(75)
Law(7373) Terms
- General accounting(956)
- Auditing(714)
- Tax(314)
- Payroll(302)
- Property(1)
Accounting(2287) Terms
- Pesticides(2181)
- Organic fertilizers(10)
- Potassium fertilizers(8)
- Herbicides(5)
- Fungicides(1)
- Insecticides(1)