Internalization Advantages for MNCs Refers To

question 9

Multiple Choice

Internalization advantages for MNCs refers to:

• A)the benefits firms gain by not disclosing important information or processes to contracting parties.
• B)contributing confidential information to contracting parties as part of a firm's collaboration.
• C)charging for the use of secret information by other firms.
• D)buying technology from others and then internalizing or keeping that technology away from competitors.

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Definitions:

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, resulting in market equilibrium.

Consumer Surplus

The variance between the amount buyers are ready to spend on a good or service and the amount they actually pay.

Tariff

A tax imposed by a government on goods and services imported from other countries to regulate trade and protect domestic industries.

Sugar

A sweet-tasting, soluble carbohydrate found in many plants, widely used as a sweetener in food and beverages.