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If countries are highly influential upon each other, the correlations of their economic growth levels would likely be ____. A firm would benefit ____ by diversifying sales among these countries relative to another set of countries that were not influential upon each other.
Coase Theorem
An economic theorem which states that if property rights exist, only a few transactions cost, and externalities can be traded, then the allocation of resources will be efficient and invariant of who owns the rights.
Impediments To Bargaining
Factors that obstruct or hinder the negotiation process between parties, potentially leading to inefficiencies or failure to reach an agreement.
Liability Rules
Legal principles that define the obligations of parties to compensate for damages or losses they have caused.
Compensate
To make amends or give an equivalent to someone for loss, damage, or suffering experienced.
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