Which of the following best describes internalisation advantages?

Internalisation advantages refer to the benefits a company gains by managing and coordinating certain activities or resources within its own organizational structure rather than relying on external market transactions. This concept often emerges in the context of international business and occurs when firms choose to maintain control over specific operations, thereby avoiding the costs or complexities associated with outsourcing or partnerships.

By organizing activities internally, a company can ensure better alignment with its overall strategic goals, maintain tighter control over quality, protect proprietary information, and reduce the risks associated with market fluctuations. This internal coordination can enhance efficiency, improve innovation, and create a distinct competitive advantage in the global market.

In contrast, the other options focus on different aspects of business strategy. Local responsiveness emphasizes adapting to local markets, competitive pricing revolves around market efficiency and cost management, while exclusive licenses relate to the rights to use certain resources or technologies rather than the internal organization of activities. Each of these concepts is relevant to business practices but does not directly capture the essence of internalisation advantages.