Transaction costs are costs that are incurred during an exchange, such as the costs for providing a good or service through market transactions rather than from within the firm (hierarchy). (A) Why should a firm enter a market through a wholly owned subsidiary (hierarchy) rather than through means such as exporting or contracts (market transaction) [50%]? (B) In terms of Transaction Cost theory, explain the classification of market and hierarchy and provide examples of each aspect for support [50%].