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)
Correct Answer:

Verified
Correct Answer:
Verified
Q113: Why might a host country promote or
Q114: Which of these created renewed determination to
Q115: Scenario: Global Manufacturing, Inc. (GMI)<br>GMI is a
Q116: When a country imports more goods and
Q117: A system of production in which each
Q119: In the _ stage of the international
Q120: One method used by host countries to
Q121: Scenario: Global Manufacturing, Inc. (GMI)<br>GMI is a
Q122: The benefit of _ is greater profit
Q123: A(n) _ is the advantage that arises