The theorists for this theory argue that internalization creates "contracting" through a unified, integrated intra-firm governance structure.
A) Internalization theory
B) Portfolio theory
C) Exporting theory
D) none of the above

Question

Quizplus · Accepted Answer

The statement is describing the core idea of Internalization theory, which suggests that firms internalize certain activities to avoid market imperfections and governance issues, leading to a unified and integrated governance structure within the firm. Portfolio theory and Exporting theory do not focus on this aspect of internalization.

The Theorists for This Theory Argue That Internalization Creates "Contracting