Theories of the Multinational Enterprise

Jean‐François Hennart

in Oxford Handbook of International Business

Published in print August 2001 | ISBN: 9780199241828
Published online November 2003 | e-ISBN: 9780191596834 | DOI:
Theories of the Multinational Enterprise

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A critical survey is presented of some of the theories that have been used to explain why multinational enterprises (MNEs) exist, with special emphasis on the transaction costs/internalization approach. The first part of the chapter discusses early capital flow and industrial organization theories in the evolution of the MNE. The second part focuses on transaction costs/internalization theories, which are now dominant theories of the MNE.

Keywords: capital flow; industrial organization; internalization; international business; multinational enterprises; theory; transaction costs

Chapter.  9678 words. 

Subjects: International Economics

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