where delivery of products is concerned a company may feel that it s more efficient or effective to handle the distribution itself using its own channels rather than to hire an external shipping company 
internalization can also apply to a multinational corporation it s seen when a corporation decides to shift assets between its own subsidiaries in different countries internalization can be beneficial to a company when it reduces what it spends overall on outsourcing it can be disadvantageous when it ends up costing the company more than expected to do a job itself for example companies may be required unexpectedly to purchase additional resources and or facilities to handle processes themselves they may have to assign more employees to the job than first planned or they may have to spend more to train more employees for a particular job than they originally projected a company probably should consider not internalizing jobs with which it s unfamiliar and for which its employees aren t trained if it lacks necessary expertise facilities equipment or machinery internalization may not be worth it internalized trading