Journal of International Business Studies

, Volume 34, Issue 2, pp 108–115

Some antecedents of internalization theory


DOI: 10.1057/palgrave.jibs.8400010

Cite this article as:
Dunning, J. J Int Bus Stud (2003) 34: 108. doi:10.1057/palgrave.jibs.8400010


This article reviews the main antecedents to Buckley and Casson's seminal volume The Future of the Multinational Enterprise (1976). In particular it considers and evaluates two main approaches to understanding the nature and function of firms viz the exchange approach and the value-added approach.


multinational enterprisethe firmforeign direct investmentthe exchange functionthe value-added functiontransaction costsinternalization theory

Copyright information

© Academy of International Business 2003

Authors and Affiliations

  1. 1.Reading and Rutgers UniversitiesUK