Which of the following theories identifies the nontransferability of resources as a reason for international business?
A) theory of comparative advantage
B) imperfect markets theory
C) product cycle theory
D) None of these are correct.

Question

Quizplus · Accepted Answer

The imperfect markets theory states that international trade occurs due to the nontransferability of resources between countries, which creates market imperfections and leads to differences in prices and availability of goods and services. The other theories listed do not specifically focus on this reason for international business.

Which of the Following Theories Identifies the Nontransferability of Resources