Question

_____ is also known as the market imperfections theory.

Answer 1

Internalization is also know as the market imperfections theory.

This theory is based on the fact a market isn't perfect because it doesn't meet the standards set for them in a competitive market. This is common in international markets because perfect competition does not exist.

Answer 2

Internalization theory is also known as the market imperfections theory. The internalization theory focuses on the performance of emerging-market multinational enterprises. It explains their existence and way of functioning. It describes the market with unlimited buyers and sellers , in which nor does everyone have the same information and it assumes there is no perfect competition.