what is internalization 
internalization occurs when a business decides to handle a transaction internally rather than route it out of house to another entity to handle all kinds of businesses including multination corporations practice internalization so do investment firms and brokerages some individuals even put internalization to use when they decide to for example fix an appliance rather than pay someone else to do so understanding internalizationinternalization can occur when an individual or business decides to handle an issue in house instead of outsourcing it to an unrelated third party companies may decide to internalize the production of a particular material have the work done in house by its own employees rather than have another manufacturer produce it 