The market imperfections approach seeks to explain
A. the disadvantages associated with the adoption of a completely free market view.
B. why different nations import goods from other countries even when they are more capable of producing them efficiently.
C. the preference for FDI over licensing by firms as a strategy to enter foreign markets.
D. the benefits of exercising protectionism coupled with partial adoption of free market approach.
E. the pattern of sale of products from one country to another.
Answer: C. the preference for FDI over licensing by firms as strategy to enter foreign markets