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A double network approach to international production

Author

Listed:
  • Roberto Schiattarella

    (University of Camerino (Italy))

  • Antonello Zanfei

    (Department of Economics, Università di Urbino "Carlo Bo")

Abstract

This paper discusses some key implications of the view, emerged in the literature, that multinational firms organise their activities by connecting internal networks of subsidiaries with external networks of contractual relationships. It is argued that this view provides some useful elements for a more comprehensive theory of multinational change and for the analysis of the impact of internationalisation on economic systems of origin and destination. A ?double network approach? to international production implies a fundamental change of focus from the ?center? of multinationals ? the headquarters ? to the ?periphery? of transnational organisations, and from individual decision making units to collective choices involving a variety of inter-linked actors. Moreover, it highlights the complexities of decision making processes associated to the increasing number and interdependencies of internal and external actors involved in international production.

Suggested Citation

  • Roberto Schiattarella & Antonello Zanfei, 2010. "A double network approach to international production," Working Papers 1013, University of Urbino Carlo Bo, Department of Economics, Society & Politics - Scientific Committee - L. Stefanini & G. Travaglini, revised 2010.
  • Handle: RePEc:urb:wpaper:10_13
    as

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    File URL: http://www.econ.uniurb.it/RePEc/urb/wpaper/WP_10_13.pdf
    File Function: First version, 2010
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    References listed on IDEAS

    as
    1. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
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    More about this item

    Keywords

    Foreign Investment; Multinational Firm.;

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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