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Analysing Foreign Market Entry Strategies: Extending the Internalisation Approach

In: The Multinational Enterprise Revisited

Author

Listed:
  • Peter J. Buckley

    (University of Leeds)

  • Mark Casson

    (University of Reading)

Abstract

Empirical studies of FDI have become much more ambitious in scope over the last 30 years. In the 1960s, the main focus of the Hymer-Kindleberger theory (Hymer, 1976; Kindleberger, 1969) and the product cycle theory (Vernon 1966) was exporting versus FDI. In the 1970s the internalisation approach identified licensing, franchising and subcontracting as other strategic options. The resurgence of mergers and acquisitions in the 1980s — often as a ‘quick fix’ route to globalisation — highlighted the choice between greenfield ventures and acquisitions. At the same time, the growing participation of US firms in IJVs drew attention to the role of cooperative arrangements.

Suggested Citation

  • Peter J. Buckley & Mark Casson, 2010. "Analysing Foreign Market Entry Strategies: Extending the Internalisation Approach," Palgrave Macmillan Books, in: The Multinational Enterprise Revisited, chapter 8, pages 177-204, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-25046-8_8
    DOI: 10.1057/9780230250468_8
    as

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