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Multinationals as Flagship FirmsRegional Business Networks$
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Alan M. Rugman and Joseph R. D'Cruz

Print publication date: 2003

Print ISBN-13: 9780199258185

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780199258185.001.0001

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Internalization and Deinternalization: Will Business Networks Replace Multinationals?

Internalization and Deinternalization: Will Business Networks Replace Multinationals?

Chapter:
(p.44) (p.45) 4 Internalization and Deinternalization: Will Business Networks Replace Multinationals?
Source:
Multinationals as Flagship Firms
Author(s):

Alan M. Rugman

Joseph R. D’cruz

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199258185.003.0004

In order to respond to the question that the title poses, this section enumerates the terms and conditions of business regulations and competitive techniques. These topics are taken into account by the internalisation planning sessions and implementation activities conducted by a multinational enterprise (MNE). Leaning towards the contemporary theory of the MNE, corporate leaders recognise that proprietary privileges result in optimal returns when positioned in the international scene. Since there are some shortcomings cited in this endeavour, attention is turned into deinternalisation, especially when the negative outcomes offset the positive consequences of internalisation. In this regard, the author focuses on the various forms, features, and underlying theories of deinternalisation that are commonly utilised by business networks in their objectives to increase production and maximise profit.

Keywords:   competitive advantage, multinational enterprise, international relations, deinsternalisation, internalisation, business networks

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