HIST PA TC

Forming a cooperative (co-op) or profit sharing company is a way to reduce principle-agent costs.

• True

• False

Which of the following are the 3 categories of transaction costs

• Trust

• Transciptional

• Transfer

• Triangulation

• Technological

______ _____ are the internal company expenses that arise from employees not acting in the interest of the owners of the firm.

(a)  

Agency theory states that issues arise between principles and their agents due to misaligned incentives based upon _______ ______

(a)  

Societies and communities form (a)   to guide behavior and help to reduce the burden of transaction costs.

Coase Theorem suggests that issuing tradable ______ _____ can help eliminate conflicts that arise from negative externalities.

(a)  

The two major development strategies since WWII have been import substitution industrialization and _____ ___ _________.

(a)  

(a)   is selling a product for less that the cost of production abroad to keep employment or market advantage in trade. It is a violation of WTO rules.

Trade flows, the distance between two economies, and the sizes of their GDPs are thee variables in the (a)   model of trade.

The European Union–South Korea Free Trade Agreement is a free _________ trade agreement

• unilateral

• multilateral

• bilateral

• none of these