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:

Book Value

The net value of a company's assets minus its liabilities and intangible assets, essentially the company's equity value as shown on the balance sheet.

Salvage Value

The forecasted sell-off price of an asset after its serviceable life has ended.

Natural Resources

Raw materials obtained from the Earth, which are utilized in the production of goods and services.

Standing Timber

Trees that are currently growing and not yet harvested, considered as assets for companies in the forestry industry.