Theories of the Multinational Firm

Book excerpt: This book is all about understanding multinational companies (MNCs) why they exist, how they compete, and their impact on society. Six important theoretical perspectives of the MNC are discussed at length and compared. The book can be read and understood at multiple levels, from learning what each theory is about to appreciating the more subtle implications of their differences for firms and society. Despite the complexity of the subject, the book is an easy and enjoyable read. It is written in a lively, user-friendly style, with many illustrated examples. William G. Egelhoff, Fordham University, US In most accounts, especially in the journal literature, the theory of international business is seen as evolving steadily through the incremental addition of a series of largely complementary analytical building blocks. Mats Forsgren sees instead a set of conflicting perspectives on the subject. In this valuable contribution he breaks down theoretical complexity in this field into its distinctive parts. He thereby gives us a better understanding of how these parts relate to one another or don t. John Cantwell, Rutgers University, US This excellent book deals with six theoretical approaches to the multinational firm, its activities and organization. The theories and their implications are explained and contrasted with each other. The clear and concise treatment of theories makes the work very useful for students, while its critical and comparative analysis can be a source of ideas for further developments by researchers. I highly recommend the book for students, teachers and researchers. Grazia Ietto-Gillies, London South Bank University, UK This timely textbook presents the assumptions and theories behind contemporary views on the multinational firm as an organization and as an actor in the global economy. Mats Forsgren analyzes and compares six different theories of the multinational firm from the dominating multinational to the politicizing multinational that have dominated the research in international business during the last four decades. Mats Forsgren reveals the basic building blocks and assumptions behind each theory in order to reach a better understanding of why the multinational firm is looked upon in so many different ways by researchers and stakeholders. This important textbook will be an invaluable resource for both undergraduate and postgraduate students on international business, international management and international economy courses.