Many MNCs have opted to remove many of their international transactions from the market and place them within a single corporate structure because

Question

Quizplus · Accepted Answer

MNCs opt to remove many of their international transactions from the market and place them within a single corporate structure because they can usually earn substantially higher incomes by internalizing intangible and specific assets. This helps them to reduce transaction costs and take advantage of economies of scale. Moreover, it allows them to control the transfer of technological knowledge, proprietary expertise, and intellectual property within the organization, thereby reducing the risk of leakage or theft.

Many MNCs Have Opted to Remove Many of Their International