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Policy coordination
Policy coordination occurs when countries agree to pursue policies intended to promote the welfare of all nations involved in the agreement. Spillover effects occur when one country's economic policy affects the economic performance of at least one other country. In the absence of policy coordination each country ignores these externalities and seeks to maximise its own individual welfare. If all countries act independently the outcome will be Nash equilibrium. With spillover effects this equilibrium is likely to be Pareto inefficient. This provides the incentive for countries to coordinate their policies.
Formation and Characteristics of Agency An agency may come into existence by the following ways: Contract (Appointment) or agreement Further this can be done in any
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NEGLIGENCE: It is still uncertain whether damage caused by negligence can be brought under the heading of "fraud" for the purpose of the exception of "fraud on the minority."
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