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The Evolution of Internationalization Patterns: The Case of U.S. Multinationals (1980-2001)

Author

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  • Flores, Ricardo G.

    (U of Illinois at Urbana-Champaign)

  • Aguilera, Ruth V.

    (U of Illinois at Urbana-Champaign)

Abstract

Multinational corporations, especially those with headquarters in the U.S., are often singled out as the flagship of globalization. Empirical research on the internationalization trends of U.S. MNCs' subsidiaries shows mixed findings regarding the rationale for the choice of foreign location. In this paper, we bring together contrasting perspectives on patterns of internationalization by analyzing whether the location choice of U.S. MNCs has significantly changed over the last two decades (1980-2001) as well as the rationale for the choice of location. We draw on economic-driven arguments and cultural-driven arguments to explain the choice of foreign location, which allows us to suggest that the OLI and Uppsala hypotheses are complementary. Our analysis can be expanded to other countries and it contributes to debates on globalization.

Suggested Citation

  • Flores, Ricardo G. & Aguilera, Ruth V., 2005. "The Evolution of Internationalization Patterns: The Case of U.S. Multinationals (1980-2001)," Working Papers 05-0113, University of Illinois at Urbana-Champaign, College of Business.
  • Handle: RePEc:ecl:illbus:05-0113
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