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Theories of Internationalization

In: International Management

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  • Manfred Fuchs

    (University of Graz)

Abstract

In this chapter, we discuss several theories that allow a deeper understanding of the international business (IB) activities of the firm and its environment. It is worthwhile starting with an introduction to early theories of international trade. We will look at the fundamental assumptions underlying these theories. Classical and neoclassical theories that explain international trade continue to be a bedrock of international economics. Key insights in the international business research are built on these widely adapted and proven theories. The focus on mainstream theories is twofold. First, we refer to a comprehensive body of broadly accepted knowledge on how a particular phenomenon is explained. Second, we need to recognize that an established theory that has originated in a particular historical period with somewhat idiosyncratic problems will be, to some extent, outdated. In addition, each historical period shaped the way how a professed question was being approached and what methodological tools were used to analyze it.

Suggested Citation

  • Manfred Fuchs, 2022. "Theories of Internationalization," Springer Books, in: International Management, chapter 3, pages 67-136, Springer.
    • Handle: RePEc:spr:sprchp:978-3-662-65870-3_3
    DOI: 10.1007/978-3-662-65870-3_3
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