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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.
Consideration - Element of Contract Just to an agreement to constitute a contract the common law of the England then adopted in the US, requires such, must be supported with c
Explain the term- Sustainability One of the major problems identified for international policy coordination is whether the agreed outcome is sustainable. As can be seen from th
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