The Theory of International Business: The Role of Economic Models

Mark Casson

Management International Review, 2018, vol. 58, issue 3, No 1, 363-387

Abstract: Abstract This paper reviews the scope for economic modelling in international business. It argues for a multi-level theory based on classical internalisation theory. The theory extends the ‘systems approach’ to the multinational enterprise in which modular activities, such as production, marketing and R&D, are linked by flows of semi-processed products and proprietary knowledge. It is shown how this theory can be extended from the firm level to the industry level in order to analyse inter-firm co-operation and rivalry. The theory can be extended to higher levels (e.g., the global economy) and lower levels (e.g., personal relationships within plants and offices).

Keywords: International business; Multinational enterprise; Internalisation; Theory; System; Modularity; Decision tree (search for similar items in EconPapers)
Date: 2018
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DOI: 10.1007/s11575-018-0342-6

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