By organizing production inside the multinational, they benefit from lower transaction costs and are able to fully exploit ownership advantages without losing control of them on the open market.

Question

Quizplus · Accepted Answer

Multinational corporations organize production internally to reduce transaction costs associated with market exchanges and to maintain control over their proprietary advantages, such as technology, brand, and business processes, thereby maximizing their competitive edge without risking loss of control over these assets in the open market.

By Organizing Production Inside the Multinational, They Benefit from Lower