________ Theory States That When an Imperfection in the Market

question 82

Short Answer

________ 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.

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Definitions:

Lineage Fission

The division or splitting of a lineage or social group into two or more new lineages or groups, often over disputes or for other social reasons.

Descent Group

A social group whose members share a common ancestry; membership is derived through either the maternal or paternal line.

Patrilineal

A social system in which lineage, inheritance, and social identity are primarily traced through the male line.

Matrilineal

Pertaining to a social system in which lineage, inheritance, and social classification are traced through the mother's line rather than the father's.