The activity in which an MNE internalizes its globally dispersed foreign operations through a unified governance structure and common ownership.
A) internalization
B) externalization
C) global integration
D) none of the above

Question

Quizplus · Accepted Answer

Internalization refers to the process in which an MNE brings together its globally dispersed foreign operations under a unified governance structure and common ownership. This allows the MNE to have more control over its operations and decision-making, and can lead to greater efficiency and cost savings. Externalization, on the other hand, refers to the process of outsourcing or divesting activities to external parties. Global integration is a broader concept that refers to the process of integrating different economies and cultures into a single global marketplace.

The Activity in Which an MNE Internalizes Its Globally Dispersed