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By Organizing Production Inside the Multinational, They Benefit from Lower

question 72

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By organizing production inside the multinational, they benefit from lower transaction costs and are able to fully exploit ownership advantages without losing control of them on the open market.


Definitions:

Fatty Acid

Long chain hydrocarbons with a terminal carboxyl group, which are components of many types of lipids (fats and oils).

Alcohol

A compound consisting of carbon, hydrogen, and oxygen, commonly used in beverages, antiseptics, and fuels.

Linoleic Acid

A polyunsaturated omega-6 fatty acid, essential for human health, found in many vegetable oils.

Stearic Acid

A saturated fatty acid with the formula C18H36O2, found in various animal and vegetable fats, and used in making soaps and cosmetics.

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