Two Types of Asymmetric Information That Create Problems for International

question 127

Multiple Choice

Two types of asymmetric information that create problems for international investment are

• A) adverse hazard and moral selection.
• B) adverse hazard and moral hazard.
• C) adverse selection and moral hazard.
• D) adverse selection and moral selection.

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Definitions:

Whistle-blowing

The act of exposing any kind of information or activity that is deemed illegal, unethical, or not correct within an organization by an employee or former employee.

Grievance Procedure

A formal process used by an organization to address complaints or disputes from employees regarding workplace issues.

Social Responsibility Strategy

A business approach that integrates social and environmental concerns in operations and interactions with stakeholders.

Consumer Protection

Laws and regulations designed to ensure the rights of consumers as well as fair trade, competition, and accurate information in the marketplace.