The Main Problem with Relying on Contracts to Reduce Opportunistic

question 40

Multiple Choice

The main problem with relying on contracts to reduce opportunistic behavior by alliance partners is that

• A) in cross-border alliances, the contracts are often not enforceable due to differences in legal systems.
• B) contracts create motivations for rule-evading behavior.
• C) contracts are ignored by opportunistic firms because the cost of enforcing the contract is too great for the other partner.
• D) it is impossible to specify all opportunistic actions by an alliance partner.

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Definitions:

Popular Democrat

A member or supporter of the Democratic Party who is widely favored or well-liked by the general public or within the party.

Ideological Label

A term used to categorize political beliefs, parties, or individuals based on their fundamental values and principles.

Communitarian

A philosophical and social movement that emphasizes the importance of community in the functioning of political life, often prioritizing communal goals over individual ones.