Reduced contract monitoring and enforcement costs are an example of an internalization advantage.

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Internalization advantages refer to the benefits a firm can achieve by integrating activities within its boundaries instead of relying on external markets. Reduced contract monitoring and enforcement costs are an example of such advantages as the firm can control the quality and performance of the activities, thus reducing the need for external monitoring and enforcement.

Reduced Contract Monitoring and Enforcement Costs Are an Example of an Internalization