The ________ Theory States That When an Imperfection in the Market

question 118

Multiple Choice

The ________ 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.

• A) market power
• B) perfect market
• C) international product life cycle
• D) market imperfections (internalization)

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Definitions:

Germany

A country in Central Europe known for its rich history, cultural heritage, and significant contributions to art, science, and philosophy.

Interdependent Self-Construal

Refers to a view of oneself as interconnected with others and emphasizes social roles and relationships.

Personal Traits

Enduring characteristics or qualities that describe an individual's behavior across different situations.

Social Relationships

Connections between individuals in a society structured around mutual interests, shared activities, roles, and social expectations.