One underlying assumption of Internalization Theory is that there is no specific advantage for exporting.

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Internalization Theory assumes that exporting is not always the most efficient way of conducting international business and that firms will internalize activities that can be conducted more profitably within the boundaries of the firm rather than exporting them. Therefore, this theory assumes that there may be specific advantages to exporting, but these advantages may not outweigh the benefits of internalization in certain situations.

One Underlying Assumption of Internalization Theory Is That There Is