Intrafirm trade enables MNEs to better coordinate cross-border activities.

Question

Quizplus · Accepted Answer

Intrafirm trade refers to the exchange of goods and services between different units or subsidiaries of the same multinational enterprise (MNE). This type of trade enables MNEs to better coordinate their cross-border activities by facilitating the transfer of inputs, knowledge, and technologies within the organization. Intrafirm trade can also lead to efficiency gains and cost savings for MNEs, which can enhance their competitiveness in international markets. Therefore, the statement is true.

Intrafirm Trade Enables MNEs to Better Coordinate Cross-Border Activities