| Theorist | Theory |
| explains why firms evolve into MNCs | |
| growth on growth from domestic market to international market (e.t. Chinese appliance manufacturer Haier) | |
| benefits 2 trading nations, assumes free trade & immobile prod'n factors, allows specialization, PENETRATE FGN MKTS EASIER | |
| firm specific advs (ownership), location advs (raw mats, cheap labour), international advs | |
| disadvs MNCs, need to find advantages for FDI, mkt imperfections offer advs via opportunities to MNCs | |
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