Explain how the existence of imperfect markets has led to the establishment of subsidiaries in foreign markets. Because of imperfect markets, resources can always be easily retrieved by the MNC, although it is of high costs, and therefore the MNC goes to the resources at a lower cost. Because of imperfect markets, resources can always be easily and freely retrieved by the MNC, but because of government regulations can not be exported from the country and therefore the MNC must go to the resources rather than retrieve resources. Because of imperfect markets, resources cannot be easily and freely retrieved by the MNC, and therefore the MNC must sometimes go to the resources rather than retrieve resources. III If perfect markets existed, would wages, prices, and interest rates among countries be more similar or less similar than under conditions of imperfect markets