- 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. Bloomberg Financial Dictionary
* * *market failure market failure ➔ failure
* * *market failure UK US noun [S or U] ECONOMICS► a situation in which a market does not operate as it should, for example where the supply of a product is not related to the level of demand for it: »
Protecting car production in the face of market failure has, far from helping them, locked the people of the area into an economy which cannot sustain itself.
Financial and business terms. 2012.
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