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Important of mutual agreement and exchange in ecomic development |
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Answer» Answer: A mutual agreement is a binding CONTRACT between two or more parties and can cover any contingency. The difference between a mutual agreement and a settlement not creating a TRUST, is determined by the operative words, ie "mutually agrees" or "settles". Production INVOLVES the CREATION of goods and services by USING scarce resources. Producers must exchange the income they earn for the scarce resources they need to enable them to produce. Therefore, both parties, producers and consumers, must exchange something they have for something others want. |
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