Buy custom Kogut and Zander's theory of evolutionary theory versus internationalization theory
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and Sugden, Roger, The nature of the Transnational firm, Pg 17). Other scholars such as Alan Rugman, Hennart etc have also talked about the theory of internalization.
Internalization is the process in which a firm instead of buying or selling goods in different countries tries to internalize the process or produces in-house i...
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setup a production facility in another country rather than buying from another firm. The internalization theory is based on transaction cost. The main assumption of this theory is that the market is imperfect and hence the firms maximize their profit. When market is imperfect for intermediate goods then it involves common ownership and control...
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