A(n)________ advantage is the one that a company gains from incorporating a business activity within itself rather than leaving it to a relatively inefficient market.
A) ownership
B) internalization
C) location
D) comparative

Question

Quizplus · Accepted Answer

Internalization advantage is the one that companies gain by integrating certain business activities within the company rather than relying on a less efficient market. By internalizing the activity, the company reduces transaction costs and other inefficiencies associated with relying on multiple external suppliers or partners. This allows the company to have better control over the quality, quantity, and cost of the products or services it produces.

A(n)________ Advantage Is the One That a Company Gains from Incorporating