IDEAS home Printed from https://ideas.repec.org/h/pal/palchp/978-0-230-62516-7_5.html
   My bibliography  Save this book chapter

Multinational Banking and the Theory of Internalization

In: Inside the Multinationals 25th Anniversary Edition

Author

Listed:
  • Alan M. Rugman

Abstract

This chapter applies the theory of internalization to explain the activities of international banks. It has already been established that multinational banks have stable earnings, see Rugman (1979) Chapter 12 and Khoury (1980). What are the reasons for such a good performance? Are they to be found in the international environment, external to the multinational bank, or are they internal? Here it is argued that the latter explanation of earnings stability is of great importance. Indeed, the theory of internalization, used successfully in analysis of the multinational enterprise elsewhere in this book, can also be applied to the activities of multinational banks. It is shown here that multinational banks act as vehicles for the internalization of imperfections in international financial markets and that they provide specialized information services which are not otherwise available to multinational enterprises.

Suggested Citation

  • Alan M. Rugman, 2006. "Multinational Banking and the Theory of Internalization," Palgrave Macmillan Books, in: Inside the Multinationals 25th Anniversary Edition, chapter 5, pages 71-86, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-62516-7_5
    DOI: 10.1057/9780230625167_5
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pal:palchp:978-0-230-62516-7_5. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.palgrave.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.