Demonstrating why economic modelling is so important in understanding international business
this stimulating and highly original book sets out a new and exciting research agenda in
international business studies. The author explains what economic models are how they are
constructed and the way in which they can be used. It illustrates how models clarify important
issues in international business - explaining empirical anomalies analyzing strategies and
evaluating government policies towards multinational firms. There are detailed discussions of
monopoly and competition in the global economy the international division of labour supply
chain coordination and the strategic implications of sunk costs in R&D. Based on this
discussion the book proposes a radical reformulation of the theory of the firm as applied to
international business.
