Under the Imperfect Markets Theory, it is assumed that factors of production are entirely mobile, so that firms can capitalize on a foreign country's resources.

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Under the Imperfect Markets Theory, it is not assumed that factors of production are entirely mobile. In fact, one of the central assumptions of this theory is that factors of production, such as labor and capital, are not perfectly mobile between countries. This creates market inefficiencies and allows firms to capitalize on these inefficiencies by expanding into foreign markets.

Under the Imperfect Markets Theory, It Is Assumed That Factors