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Global business and economics: towards a theory of the multinational corporation

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  • Anthony B. Lumby

Abstract

Two of the outstanding features of the growth of the international economy have been the extraordinary expansion of foreign direct investment (FDI) and the multinational corporation (MNC). In attempting to explain these phenomena, it is argued that the growth of FDI and MNCs are more easily understood when located in historical context. Accordingly, the major theoretical developments in explaining MNCs are outlined against the background of the rapid expansion in FDI during the twentieth century. It is concluded that different theoretical perspectives enjoy strong explanatory power at different times, and therefore the development of a single, overarching theory to explain the growth of FDI and MNCs may be beyond our reach.

Suggested Citation

  • Anthony B. Lumby, 2001. "Global business and economics: towards a theory of the multinational corporation," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 3(1), pages 111-132.
    • Handle: RePEc:ids:gbusec:v:3:y:2001:i:1:p:111-132
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