_____ is also known as the market imperfections theory.

Question

Quizplus · Accepted Answer

The correct theory referred to in the question is the Internalization theory, which is also known as the market imperfections theory. This theory explains that companies expand internationally to internalize markets that are imperfect, meaning that there are barriers and transaction costs that make it difficult to conduct business efficiently. Therefore, the company chooses to internalize the market by expanding its own operations rather than relying on external parties.

_____ Is Also Known as the Market Imperfections Theory