Multi-level government has shown to increase efficiency of governance by creating an agreed upon standard for the implementation and execution of policies. To elaborate, the establishment of a supranational institution can be used to set standards for the way cooperating nations run their environmental, industrial, and safety policies. A key factor for multi-level governance is the terms the national actors agree to when forming the supranational institution as they will give certain decision making processes to the higher level, and agree to abide by the outcome. Nations consent to the terms as they face a common issue of international policy that has to deal with collective-action problems making it nonsensical to attend to by themselves. Agreements between nations to form a multi-level government creates an efficiency gain that allows them to all share in the positive benefit.