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

question 30

Multiple Choice

A/An ________ 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:

Growth Rate

The percentage change in the value of a specific metric (e.g., revenue, population) over a designated period.

Cost Of Capital

The earnings threshold a business needs to meet on investment endeavors to preserve its market worth and secure financing.

Debt-Equity Ratio

A financial comparison indicating the relationship of debt to equity in financing a company’s assets.

WACC

A calculation of a firm's cost of capital in which each category of capital is proportionately weighted, used to evaluate investment opportunities.