Which of the Following Factors Is an Effective Tool for Companies

question 3

Multiple Choice

Which of the following factors is an effective tool for companies to use to mitigate hidden action and hidden information problems in agency relationships?

• A)Monitoring
• B)Offshoring
• C)Coordination
• D)Objectives
• E)Confrontation

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Definitions:

Regional Trade Agreements

Treaties between countries in the same region to reduce trade barriers and promote economic cooperation.

Trade Barriers

Measures implemented by a government to restrict or control international trade, including tariffs, quotas, and embargoes.

Normal Trade Relations

A status granted by one country to another in international trade, ensuring equal treatment in terms of import duties and tariffs.

World Trade Organization

An international organization designed to supervise and liberalize world trade by providing a framework for negotiating trade agreements and a dispute resolution process.