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  1. Explain how the theory of comparative advantage relates to the need for international business.
  2. Explain how the product cycle theory relates to the growth of an MNC.
  3. Explain how the existence of imperfect markets has led to the establishment of subsidiaries in foreign markets.
  4. If perfect markets existed, would wages, prices, and interest rates among countries be more similar or less similar than under conditions of imperfect markets, and why?

 Multinational Corporations – 

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