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The theory of international business: the role of economic models

In: Global Business

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Abstract

This chapter 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).

Suggested Citation

  • ., 2023. "The theory of international business: the role of economic models," Chapters, in: Global Business, chapter 6, pages 117-144, Edward Elgar Publishing.
    • Handle: RePEc:elg:eechap:22129_6
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    File URL: https://www.elgaronline.com/doi/10.4337/9781035308040.00015
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