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International Diversification and the Multinational Enterprise

International Diversification and the Multinational Enterprise BOOK REVIEWS International Diversification and the Multinational Enterprise Alan M. By Rugman Massachusetts Lexington, D. C. Heath and 1979 Co., pages The central theme of this new book on the of international diversification concept is: the motivation for international investment can be the enter- explained by desire to reduce risk. prise's Two main theories are forth as reasons undertake direct put why enterprises investments. Most recent of the motivation for in- foreign explanations foreign vestment are the author under the market grouped by imperfections hypothesis, which that an will invest in a as as this suggests enterprise foreign country long the firm over its local and/or gives specific advantages competitors competitors at home. This of theories considers the motivation of direct investment in group terms of maximization. The second is the main thesis of this book. It profit theory is in the form of a risk reduction international diversification presented by and that motivation for direct investment can also hypothesis suggests foreign be caused the loss minimization behavior of the firms. by The author uses to demonstrate that can diversification reduce portfolio theory the risk of from direct multinational earnings foreign investment; consequently, are viewed as more able to http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of International Business Studies Springer Journals

International Diversification and the Multinational Enterprise

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Publisher
Springer Journals
Copyright
1980 Academy of International Business
ISSN
0047-2506
eISSN
1478-6990
DOI
10.1057/jibs.1980.12
Publisher site
See Article on Publisher Site

Abstract

BOOK REVIEWS International Diversification and the Multinational Enterprise Alan M. By Rugman Massachusetts Lexington, D. C. Heath and 1979 Co., pages The central theme of this new book on the of international diversification concept is: the motivation for international investment can be the enter- explained by desire to reduce risk. prise's Two main theories are forth as reasons undertake direct put why enterprises investments. Most recent of the motivation for in- foreign explanations foreign vestment are the author under the market grouped by imperfections hypothesis, which that an will invest in a as as this suggests enterprise foreign country long the firm over its local and/or gives specific advantages competitors competitors at home. This of theories considers the motivation of direct investment in group terms of maximization. The second is the main thesis of this book. It profit theory is in the form of a risk reduction international diversification presented by and that motivation for direct investment can also hypothesis suggests foreign be caused the loss minimization behavior of the firms. by The author uses to demonstrate that can diversification reduce portfolio theory the risk of from direct multinational earnings foreign investment; consequently, are viewed as more able to

Journal

Journal of International Business Studies – Springer Journals

Published: Mar 1, 1980

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