Abstract
This chapter looks at mainstream ideas in business and multinational organization, namely the role of managerial hierarchies in utilizing the core capabilities of large firms, and the role of a parent multinational in utilizing its “ownership” advantages or core capabilities in foreign markets through a cross-border managerial hierarchy. It considers some of the debates around international business theory, specifically multinational subsidiaries, cross-border networks, emerging economy multinationals, and governments, and suggests ways in which business historians might contribute to the issues. P. Buckley and M. Casson utilize the transaction cost analysis to explain why multinationals abandon strategies of exporting and licensing in foreign markets for extensive Foreign direct investment (FDI) commitments. K. Kojima and T. Ozawa took national and international factors as their starting-point for exploring the link between outward FDI, economic development, trade, and government policy. Manufacturing subsidiaries tended to serve national markets, even if they coordinated with the parent in general management or product development.
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