A U.S.firm with a production facility in Brazil uses its own personnel to handle almost all activities because their outsourcing would be too costly and inefficient.Its internalization will most likely lead to cost savings because the firm can avoid ________.
A)costly customs brokers
B)high, fixed start-up costs
C)the costs of enforcing an agreement
D)sharing profits

Question

Quizplus · Accepted Answer

Internalization allows a firm to avoid the costs associated with enforcing agreements with external parties, such as monitoring, legal fees, and ensuring compliance.

A USFirm with a Production Facility in Brazil Uses Its Own