International Business: The Challenges of Globalization (9th Edition) (What's New in Management)
International Business: The Challenges of Globalization (9th Edition) (What's New in Management)
9th Edition
ISBN: 9780134729220
Author: John J. Wild, Kenneth L. Wild
Publisher: PEARSON
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Chapter 7.2, Problem 1QS2
Summary Introduction

To Determine:

Imperfections that are relevant to the discussion of market imperfections theory.

Introduction:

Market imperfection theory states that when an imperfection in the market makes a transaction less efficient than it could be, a company will undertake foreign direct investment to internalize the transaction and thereby remove the imperfection. It arises from international markets when perfect competition doesn’t exist.

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