Abstract
The economic approach to international business (IB) studies is very powerful. It can analyse incredibly complex situations in a remarkably simple way. But some situations are so complex that the models themselves become complicated too. This chapter examines three types of complexity in IB, associated with economies of scale, corporate taxation, and trade and tariffs. It discusses the strategies available to economic modellers for extending simple models in order to analyse these complicated issues.
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For further reading on taxes and transfer pricing see
Diewert, W. E. (1985). Transfer pricing and economic efficiency. In A. M. Rugman & L. Eden (Eds.), Multinationals and transfer pricing (pp. 47–81). London: Croom Helm.
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Casson, M. (2016). Extensions of the Models. In: The Theory of International Business. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-32297-1_9
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DOI: https://doi.org/10.1007/978-3-319-32297-1_9
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Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-319-32296-4
Online ISBN: 978-3-319-32297-1
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