Market failure

Definition:

The inability of arm's length markets to deliverer goods or services. A multinational corporation's market internalization advantages may take advantage of market failure.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Own foreign offices

U.S. reporting institutions' parent organizations, branches, and/or majority owned subsidiaries located outside the United States.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio