1. What does each of these components of transaction costs mean?

information costs,
Bargaining and decision costs, Supervision and enforcement costs, and investments in social
relations?
Answer:
Transaction fees can be divided into three broad categories:
Search and information costs are costs such as in determining that the goods needed are
available in the market, which has the lowest price, etc.

Bargaining and decision costs are the costs necessary to reach acceptable agreements with
other parties to a transaction, draw up appropriate contracts, and so on. In game theory this
is analyzed for example in the game of chicken. In asset markets and organizational
economies, transaction costs are a function of the distance between supply and demand.

Policing and enforcement costs are the costs of ensuring the other party complies with the
terms of the contract, and taking appropriate action (often through the legal system) if this
is not the case.

2. Explain and example for market transaction costs, managerial transaction costs, and political
transaction costs.
Answer:
Market transaction costs can be grouped in more detail as:

The cost of preparing the contract (narrowly it can be interpreted as the cost of searching
and information).
Costs for executing contracts/concluding contracts (negotiation and decision-making costs).
Monitoring costs and forcing the contractual obligations.

Managerial transaction costs include: (1) costs for setting up, maintaining, or changing the
organizational design. These costs also relate to a wider range of operational costs, which
are typically included in fixed transaction costs; and (2) costs of running the organization,
which can then be broken down into two sub-categories: (a) information costs; and (b) costs
associated with the physical transfer of goods and services across a separable interface.

political transaction costs relate to the provision of organizations and public goods
associated with political aspects. In general, political transaction costs are nothing but the
costs of supplying public goods through collective action, and can be considered as an
analogy to managerial transaction costs. In particular, these costs include: (1) costs of
establishing, maintaining and changing formal and informal political organizations; (2) the
costs of running politics (the costs of running politics). These costs are current expenses for
matters relating to the 'task of power'

3. Within the governance structure, we recognize spot, hybrid or contract markets, and
corporate integration. Explain?
Answer:
The spot market is the market for buying or selling financial instruments, commodities or
other assets using cash or direct payment techniques.
Hybrid Contract according to Al-Imrani is an agreement between two parties to carry out a
contract that contains two or more contracts – such as buying and selling by leasi7ng.
NB Integration is bringing together the desires of employees and the interests of the
company, in order to create cooperation that gives satisfaction. This integration is very
important because it is one of the keys to achieving good results for the company and
all parties in it.