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Elements of Multinational Strategy
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This textbook on international business integrates the academic study of international trade and foreign direct investment with the actual strategic and operational decisions of exporters and multinational enterprises. The book aims to merge managerial decision making in the internationally oriented firm with the conceptual tools provided by international economics.§The book proceeds as follows. Like most firms, we begin with exportingand importing, and tackle issues raised by overseas investmentlater. We first analyze the gains from trade and then enumerate themany costs of cross-border goods and service transactions. Next weapply the four elements of multinational strategy - factor advantages,trade costs, scale economies, and market sizes - to the decision of whichmultinational form best suits each firm. We then take up issues of centralimportance to firms that invest overseas: exchange rate risk, politicalrisk, taxation, and expatriate assignments.
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