Internalization Refers to the Replacement of Cross-Border Markets (Such as Importing

question 35

True/False

Internalization refers to the replacement of cross-border markets (such as importing and exporting) with one firm (the MNE) locating in two or more countries.

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Definitions:

Produce

Produce generally refers to agricultural products, especially fresh fruits and vegetables, harvested for human consumption.

Lower Cost

A situation or strategy in which the production or offering of goods and services is achieved with minimal expense.

Sunk Costs

Costs that have already been incurred and cannot be recovered, which should not influence future business decisions.

Economic Decisions

Choices made by individuals, firms, or governments regarding the allocation of resources to satisfy needs and wants.