Weltwirtschaftliches Archiv

, Volume 121, Issue 3, pp 564–569 | Cite as

Internalisation as a general theory of foreign direct investment: A critique

  • Thomas G. Parry


The theory of internalisation does provide an explanation of certain types of FDI activities by MNEs. In particular, there are three areas where internalisation appears to provide an explanation of FDI as a specific form of international involvement by the MNE: these entail vertical integration, transfer pricing and quality control [Buckley, Casson, 1976; Casson, 1983].


Foreign Direct Investment Trade Barrier Transfer Price Multinational Enterprise Market Imperfection 
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© Institut fur Weltwirtschaft an der Universitat Kiel 1985

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  • Thomas G. Parry

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