Transactions costs associated with international agreements

Name: Transactions costs associated with international agreements
Brand: Quizplus
Rating: 4.8 (52 reviews)

Question

Quizplus · Accepted Answer

Transactions costs, such as bargaining and monitoring costs, are inherent in any international agreement. These costs are higher with majority and consensus decision rules as they involve multiple parties and require more coordination and communication. Therefore, the correct choice is C, as transactions costs are positive with both majority and consensus decision rules.

Transactions Costs Associated with International Agreements