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 the above

Question

Quizplus · Accepted Answer

The imperfect markets theory identifies the nontransferability of resources as a reason for international business. According to this theory, markets are imperfect, and resources may not be able to move freely between different countries due to various barriers such as transportation costs, government regulations, and cultural differences. As a result, firms may seek to invest in foreign markets in order to access valuable resources that are not available in their home markets.

Which of the Following Theories Identifies the Nontransferability of Resources