THE THEORY OF THE MULTINATIONAL FIRM

Abstract

The traditional view of the multinational firm, from the early analyses in the 1960s and early 1970s, is one of a large industrial company with operations in multiple countries and a centralized chain of command. By definition, a multinational firm has activities in more than two countries. Although this simple definition is not widely used, it is a reasonable baseline from which to begin thinking about such firms. If the firm has sales operations in multiple countries, production in multiple countries, or some other permutation of international business activities physically present in multiple countries, then it is multinational.

Citation

Grosse, R. (2004), "THE THEORY OF THE MULTINATIONAL FIRM", Hitt, M.A. and Cheng, J.L.C. (Ed.) "Theories of the Multinational Enterprise: Diversity, Complexity and Relevance" (Advances in International Management, Vol. 16), Emerald Group Publishing Limited, Leeds, pp. 83-97. https://doi.org/10.1016/S0747-7929(04)16006-X