(Don't copy the answer)

2 Uncertainty, Asymmetric Information and Hidden Action Explain why the three crucial institutional conditionsverifiability of states of nature, the enforceability of contractual stipulations, and the prevention of hidden actionsare tan- tamount for the idea that "the case for free international capital markets is the same as the case for free trade but for the subscripts.\" Explain ivhf,r under these three institutional conditions the diversification of country risk under uncertainty provides another source of gains from interternporal trade