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Internalization ( or internalisation) is the process of making something internal, with more specific meanings in various fields. It is the opposite of externalization.


Psychology and sociology

In
psychology Psychology is the science, scientific study of mind and behavior. Psychology includes the study of consciousness, conscious and Unconscious mind, unconscious phenomena, including feelings and thoughts. It is an academic discipline of immens ...
, internalization is the outcome of a conscious mind reasoning about a specific subject; the subject is internalized, and the consideration of the subject is internal. Internalization of ideals might take place following
religious conversion Religious conversion is the adoption of a set of beliefs identified with one particular religious denomination to the exclusion of others. Thus "religious conversion" would describe the abandoning of adherence to one denomination and affiliatin ...
, or in the process of, more generally, moral conversion. Internalization is directly associated with
learning Learning is the process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, and preferences. The ability to learn is possessed by humans, animals, and some machines; there is also evidence for some kind of lea ...
within an organism (or business) and recalling what has been learned. In psychology and
sociology Sociology is a social science that focuses on society, human social behavior, patterns of social relationships, social interaction, and aspects of culture associated with everyday life. It uses various methods of empirical investigation an ...
, internalization involves the integration of attitudes, values, standards and the opinions of others into one's own identity or sense of self. In psychoanalytic theory, internalization is a process involving the formation of the
super ego The id, ego, and super-ego are a set of three concepts in psychoanalytic theory describing distinct, interacting agents in the psychic apparatus (defined in Sigmund Freud's structural model of the psyche). The three agents are theoretical const ...
. Many theorists believe that the internalized values of behavior implemented during early socialization are key factors in predicting a child's future moral character. The self-determination theory proposes a motivational continuum from the extrinsic to intrinsic motivation and autonomous self-regulation. Some research suggests a child's moral self starts to develop around age three. These early years of socialization may be the underpinnings of moral development in later childhood. Proponents of this theory suggest that children whose view of self is "good and moral" tend to have a developmental trajectory toward pro-social behavior and few signs of anti-social behavior. In one child developmental study, researchers examined two key dimensions of early conscience – internalization of rules of conduct and empathic affects to others – as factors that may predict future social, adaptive and competent behavior. Data was collected from a longitudinal study of children, from two parent families, at age 25, 38, 52, 67 and 80 months. Children's internalization of each parent's rules and empathy toward each parent's simulated distress were observed at 25, 38 and 52 months. Parents and teachers rated their adaptive, competent, pro-social behavior and anti-social behavior at 80 months. The researchers found that first, both the history of the child's early internalization of parental rules and the history of their empathy predicted the children's competent and adaptive functioning at 80 months, as rated by parents and teachers. Second, children with stronger histories of internalization of parental rules from 25 to 52 months perceived themselves as more moral at 67 months. Third, the children that showed stronger internalization from 25 to 52 months came to see themselves as more moral and "good". These self-perceptions, in turn, predicted the way parents and teachers would rate their competent and adaptive functioning at 80 months.


As a symptom

In behavioral psychology, the concept of internalization may also refer to disorders and behaviors in which a person deals with stressors in manners not externally evident. Such disorders and behaviors include depression,
anxiety disorder Anxiety disorders are a cluster of mental disorders characterized by significant and uncontrollable feelings of anxiety and fear such that a person's social, occupational, and personal function are significantly impaired. Anxiety may cause phy ...
,
bulimia Bulimia nervosa, also known as simply bulimia, is an eating disorder characterized by binge eating followed by purging or fasting, and excessive concern with body shape and weight. The aim of this activity is to expel the body of calories eaten ...
and anorexia.


Biology

In sciences such as
biology Biology is the scientific study of life. It is a natural science with a broad scope but has several unifying themes that tie it together as a single, coherent field. For instance, all organisms are made up of cells that process hereditary ...
, internalization is another term for
endocytosis Endocytosis is a cellular process in which substances are brought into the cell. The material to be internalized is surrounded by an area of cell membrane, which then buds off inside the cell to form a vesicle containing the ingested material. ...
, in which molecules such as proteins are engulfed by the cell membrane and drawn into the cell.


Economics and management

In
economics Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics anal ...
, internalization theory explains 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. In other words, the alternative to internalization through direct investment is some form of
licensing A license (or licence) is an official permission or permit to do, use, or own something (as well as the document of that permission or permit). A license is granted by a party (licensor) to another party (licensee) as an element of an agreeme ...
of the firm's know-how to a firm in the target economy.


Finance

In
finance Finance is the study and discipline of money, currency and capital assets. It is related to, but not synonymous with economics, the study of production, distribution, and consumption of money, assets, goods and services (the discipline of f ...
, 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."SEC.gov
/ref> For a related issue regarding trade execution, see
payment for order flow Payment for order flow (PFOF) is the compensation that a stockbroker receives from a market maker in exchange for the broker routing its clients' trades to that market maker. It is a controversial practice that has been called a " kickback" by its ...
.


See also

*
Cultural homogenization Cultural homogenization is an aspect of cultural globalization, listed as one of its main characteristics, and refers to the reduction in cultural diversity through the popularization and diffusion of a wide array of cultural symbols—not only ...
* Social influence


Notes


References

*Meissner, W. W. (1981), ''Internalization in Psychoanalysis'', International Universities Press, New York. *Wallis, K. C. and J. L. Poulton (2001), ''Internalization: The Origins and Construction of Internal Reality'', Open University Press, Buckingham and Philadelphia. * Oxford Open Learning
GCSE The General Certificate of Secondary Education (GCSE) is an academic qualification in a particular subject, taken in England, Wales, and Northern Ireland. State schools in Scotland use the Scottish Qualifications Certificate instead. Private sc ...
Psychology - Module three: lesson nine. Social philosophy Sociological terminology