A/n ________ Would Be an Example of an Internalization Advantage

question 26

Multiple Choice

A/n ________ would be an example of an internalization advantage for an MNE.

• A)patent
• B)economy of scale
• C)unique source of raw materials
• D)possession of proprietary information

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Definitions:

Corporate Bonds

Debt securities issued by corporations to raise capital, with terms specifying the interest rate, maturity date, and other conditions.

Taxation

The process by which governments finance their expenditure by imposing charges on citizens and corporate entities.

Treasury Bond

A long-term, interest-bearing security issued by the U.S. Treasury with a maturity period typically longer than ten years.

Ask

The lowest price a seller is willing to accept for a security.