Internalization

Internalization (or internalisation) has different definitions depending on the field that the term is used in. Internalization is the opposite of externalization.

General
Generally, internalization is the long-term process of consolidating and embedding one’s own beliefs, attitudes, and values, when it comes to moral behavior. The accomplishment of this may involve the deliberate use of psychoanalytical or behavioral methods.

When changing moral behavior, one is said to be "internalized" when a new set of beliefs, attitudes, and values replaces or habituates the desired behavior. For example, such internalization might take place following religious conversion.

Internalization is also often associated with learning (for example, learning ideas or skills) and making use of it from then on. The notion of internalization therefore also finds currency in applications in education, learning, and training, and in business and management thinking....

Psychology and sociology
In sciences such as psychology and sociology, internalization is the process of acceptance of a set of norms established by people or groups which are influential to the individual. The process starts with learning what the norms are, and then the individual goes through a process of understanding why they are of value or why they make sense, until finally they accept the norm as their own viewpoint.

Role models can also help. If someone an individual respects is seen to endorse a particular set of norms, the individual is more likely to internalize those norms. This is called identification. In Freudian psychology, internalization is one of the concepts of the psychological process of introjection, a psychological defense mechanism.

In developmental psychology, internalization is the process through which social interactions become part of the child’s mental functions, i.e., after having experienced an interaction with another person the child subsequently experiences the same interaction within him/herself and makes it a part of their understanding of interactions with others in general. As the child experiences similar interactions over and over again, they slowly learns to understand and think about them on higher, abstract levels. Lev Vygotsky suggested that mental functions, such as concepts, language, voluntary attention and memory, are cultural tools acquired through social interactions.

Biology
In sciences such as biology internalization is what the body does to cells, neurons, receptors, transporters etc. once they've lived out their life cycle or have otherwise been damaged or compromised. It is a process by which a dead or mutated cell is recycled by the body in a way to consume said cell for its energy in the body as the body creates new ones.

Economics and management
In economics, internalization can refer to the practice of multinational enterprises (MNEs) to execute transactions within their organization rather than relying on an outside market. It must be cheaper for an MNE to internalize the transfer of its unique ownership advantages between countries than to do so through markets. Internalization often leads to licensing.

Finance
In Finance, internalization can refer to several concepts. "When you place an order to buy or sell a stock, your broker has choices on where to execute your order. Instead of routing your order to a market or market-makers for execution, your broker may fill the order from the firm's own inventory -- this is called 'internalization.' In this way, your broker's firm may make money on the "spread" – which is the difference between the purchase price and the sale price." For a related issue regarding trade execution, see payment for order flow.