Abstract
The literature on international business (IB) studies relies heavily on concepts from business strategy and makes relatively little use of concepts from economics. This is a mistake. This chapter introduces the concepts used by economists to analyse IB issues. It describes ‘how economists think’ and what they do and explains why their approach is so useful in IB studies.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Bibliography
For a historical perspective of the role of models in economics see:
Blaug, M., & Lloyd, P. (2010). Famous figures and diagrams in economics. Cheltenham: Edward Elgar.
Morgan, M. (2012). The world in the model. Cambridge: Cambridge University Press.
For further information on the key thinkers see:
Chamberlin, E. (1933). Theory of monopolistic competition. Cambridge, MA: Harvard University Press.
Lerner, A. P. (1944). Economics of control. New York: Macmillan.
Marshall, A. (1890). Principles of economics, volume I (Ed. C. W. Guillebaud). London: Macmillan for the Royal Economic Society, 1961.
Robbins, L. (1932). An essay on the nature and significance of economic science. London: Macmillan.
Samuelson, P. A. (1947). Foundations of economic analysis. Cambridge, MA: Harvard University Press.
Schumpeter, J. A. (1954). History of economic analysis (Ed. Elizabeth Boody Schumpeter) London: George Allen and Unwin.
For a discussion of methodological issues in the economics of IB see:
Buckley, P. J., & Casson, M. (1993). Economics as an imperialistic social science. Human Relations, 46, 1035–1052.
Buckley, P. J., & Casson, M. (2009). The internalisation theory of the multinational enterprise: A review of the progress of a research agenda after 30 years. Journal of International Business Studies, 40, 1563–1580.
For a humorous account of economic methodology see:
Jevons, M. [pseudonym]. (1985). The fatal equilibrium. Cambridge, MA: MIT Press.
For further information on the origins of the transitivity of preferences and rationality see:
Arrow, K. J. (1951). Social choice and individual values. New Haven: Yale University Press.
For an Austrian school analysis of market dynamics see:
Kirzner, I. M. (1973). Competition and the market process. Chicago: University of Chicago Press.
For the origins of the factor proportions theory of trade see:
Ohlin, B. (1933). Interregional and international trade. Cambridge, MA: Harvard University Press.
For the origins of modern location theory see:
Weber, A. (1929). Theory of the location of industries (Ed. C. J. Friedrich). Chicago: University of Chicago Press.
For a trade theorist’s view of internalisation see:
Magee, S. P. (1977). Multinational corporations, industry technology cycle and development. Journal of World Trade Law, 11, 297–321.
Author information
Authors and Affiliations
Rights and permissions
Copyright information
© 2016 The Editor(s) (if applicable) and the Author(s)
About this chapter
Cite this chapter
Casson, M. (2016). The Relationship Between Economics and International Business Studies. In: The Theory of International Business. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-32297-1_1
Download citation
DOI: https://doi.org/10.1007/978-3-319-32297-1_1
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-32296-4
Online ISBN: 978-3-319-32297-1
eBook Packages: Business and ManagementBusiness and Management (R0)