Economic Models and Methods
Authors: Mark Casson
Presents reformulation of the theory of the firm applied to international business
Addresses popular misconceptions in IB regarding economics
Includes models essential for analyzing business behavior in a global economy
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.
Table of contents
Front Matter
The Relationship Between Economics and International Business Studies
Introduction to Modelling Techniques
Introduction to Monopoly
Introduction to Location
Division of Labour and Modularisation
Analysis of Ownership
Modelling Contractual Arrangements
Global Rivalry
Extensions of the Models
The Management of the Firm
Conclusions: A Model-Building Agenda
Back Matter
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