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State the principal-agent problem when there is uncertainty over both a projects return and an agents effort. In which ways can foreign trade affect competition,

State the principal-agent problem when there is uncertainty over both a project’s return and an agent’s effort. In which ways can foreign trade affect competition, product-market shares and a project’s return? How can foreign trade therefore alter incentives for efficiency and innovation?

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For example consider the case of a listed real estate company The company is planning to take up a new project Here the shareholders and management of ... blur-text-image

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