Question

The United States of America and the Republic of Korea (South Korea) have a strong military partnership. The United States of America has troops on South Korean soil and has issued an ironclad security commitment to the nation, so in the event that something occurs the United States will provide military assistance to South Korea. Which of the following statements are true The agreement causes South Korea to engage in less risky behaviour due to a desire not to waste United States military resources. The agreement causes the United States to engage in risky behaviour for they know they will always have South Koreas co-operation. The agreement is an example of adverse selection as South Korea is more informed about the military situation and thus has lowered the quality of the military partnership. The agreement allows for the potential existence of moral hazard as South Korea may change its behaviour knowing that the United States will provide military assistance

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Option 4

Moral hazard is a situation when one of the person gets involved in a risky event because of awareness of protection against the risk. Here South Korea would change its behaviour because of protection from US which might be dangerous in the future.

Add a comment
Know the answer?
Add Answer to:
The United States of America and the Republic of Korea (South Korea) have a strong military...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • QUE S TION 7 The United States of America and the Republic of Korea (South Korea)...

    QUE S TION 7 The United States of America and the Republic of Korea (South Korea) have a strong military partnership. The United States of America has troops on South Korean soil and has issued an "ironclad" security commitment to the nation, so in the event that something occurs the United States will provide military assistance to South Korea. Which of the following statements are true: The agreement could result in South Korea engaging in less risky behaviour due to...

  • Could anyone help me to check this?My friends said this ans is wrong The United States...

    Could anyone help me to check this?My friends said this ans is wrong The United States of America and the Republic of Korea (South Korea) have a strong military partnership. The United States of America has troops on South Korean soil and has issued an "ironclad" security commitment to the nation, so in the event that something occurs the United States will provide military assistance to South Korea. Which of the following statements are true The agreement causes South Korea...

  • On page 334-335 there is a feature entitled - Institutions in Action. Why Did Asia Industrialize Faster than Lati...

    On page 334-335 there is a feature entitled - Institutions in Action. Why Did Asia Industrialize Faster than Latin America?] Page 335 of the feature has three questions, you can to respond to any one of the three but please pick just one. It should be about one page long Cite two source. UN HD INSTITUTIONS IN ACTION Why Did Asia Industrialize Faster than Latin America? ecades on the produd middle The rise of Asia over the past four decades...

  • How did Samsung overtake Panasonic and Philips? What core competencies (resources and capabilities) did the firm...

    How did Samsung overtake Panasonic and Philips? What core competencies (resources and capabilities) did the firm possess that helped it to be successful? (Discuss the international strategy that Samsung executed.) Samsung Leadership Era: 2000–Present Samsung group was founded in 1938 by Byung-Chull Lee as a simple trading company in Taegu, Korea that exported basic goods such as dried fish, vegetables, and fruit before expanding into several business lines, including insurance, securities, and retail.43 In 1969, Lee decided to enter the...

  • FISCAL POLICY IN THEORY: March, 2020: we are on the verge of Congress and the President...

    FISCAL POLICY IN THEORY: March, 2020: we are on the verge of Congress and the President passing legislation that will empower the federal government to spend an unprecedented amount of EXTRA money not seen since World War 2 ---- in order to address the pandemic but also to help cushion the blow financially of perhaps ten or twenty million Americans --- or more --- losing their jobs, and thus suffering a drop in income. The scale of the 2020 recession...

  • Founded in 2006 by Blake Mycoskie, TOMS Shoes was an American footwear company based in Santa...

    Founded in 2006 by Blake Mycoskie, TOMS Shoes was an American footwear company based in Santa Monica, California. Although TOMS Shoes was a for-profit business, its mission was more like that of a not-for-profit organization. The firm’s reason for existence was to donate to children in need one new pair of shoes for every pair of shoes sold. Blake Mycoskie referred to it as the company’s “One for One” business model. While vacationing in Argentina during 2006, Mycoskie befriended children...

  • Please read the article and answer about questions. You and the Law Business and law are...

    Please read the article and answer about questions. You and the Law Business and law are inseparable. For B-Money, the two predictably merged when he was negotiat- ing a deal for his tracks. At other times, the merger is unpredictable, like when your business faces an unexpected auto accident, product recall, or government regulation change. In either type of situation, when business owners know the law, they can better protect themselves and sometimes even avoid the problems completely. This chapter...

  • Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between...

    Chapter overview 1. Reasons for international trade Resources reasons Economic reasons Other reasons 2. Difference between international trade and domestic trade More complex context More difficult and risky Higher management skills required 3. Basic concept s relating to international trade Visible trade & invisible trade Favorable trade & unfavorable trade General trade system & special trade system Volume of international trade & quantum of international trade Commodity composition of international trade Geographical composition of international trade Degree / ratio of...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT