Economics and Management
In economics, internalization can refer to the practice of multinational enterprises (MNEs) to execute transactions within their organization rather than relying on an outside market. It must be cheaper for an MNE to internalize the transfer of its unique ownership advantages between countries than to do so through markets. In other words, the alternative to internalization through direct investment is some form of licensing of the firm's know-how to a firm in the target economy.
Read more about this topic: Internalization
Famous quotes containing the words economics and, economics and/or management:
“Religion and art spring from the same root and are close kin. Economics and art are strangers.”
—Willa Cather (1876–1947)
“I am not prepared to accept the economics of a housewife.”
—Jacques Chirac (b. 1932)
“People have described me as a “management bishop” but I say to my critics, “Jesus was a management expert too.””
—George Carey (b. 1935)