Geography Reference
In-Depth Information
8. The PCM has been one of the most cited and criticized theories of the whole literature
on international production. For more extensive views on its limits see, among others,
Cantwell (1989, 1995) and Ietto-Gillies (2005).
9. See discussion below.
10. This stream of literature will be discussed more in detail in Chapter 4.
11. Birkinshaw (1996) has discussed the progression of a subsidiary's development in
terms of the geographic reach of its responsibilities. Thus, a subsidiary may acquire a
'regional mandate' where it coordinates activities with regard to a particular class of
products overseeing other subsidiaries in the same region. Eventually it may obtain a
'global product mandate' where its responsibilities become worldwide.
12. Including, as already mentioned, the contribution of these authors themselves (see
Hymer 1970; Vernon 1974, 1979a, b; Caves 1982a, b).
13. See for example Johnson (1970), Horst (1972), Franko (1976), Magee (1977).
14. See for example Knickerbocker (1973), Graham (1975).
15. Indeed, Caves himself in his later work (1982a, b, 1996) reinterpreted the MNE integra-
tion across borders in terms of the internalization theory.
16. The crucial developments on multinationality and technological accumulation, and
their geographical implications, will be discussed in detail in Chapter 4, as they address
more specifically the issue of the internationalization of MNE innovation activities,
rather than being concerned with MNE operations in general.
17.
Again, used mostly as the best proxy for MNE activity.
18.
See Barba et al. (2004) for their effective classification of costs and benefits of FDI by
typology.
19.
For localization versus diversification economies see also Chapter 5.
