According to transaction cost analysis, firms seek to minimize transaction costs in their efforts to expand and market their products globally. These may be classified as Contracting costs, Search costs, Monitoring Costs and Enforcement costs.

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This statement is true as transaction cost analysis states that firms strive to reduce transaction costs, including contracting, search, monitoring, and enforcement costs, when expanding and marketing their goods and services globally.

According to Transaction Cost Analysis, Firms Seek to Minimize Transaction