Multinational Firms Gain Competitive Edge Through Smarter Information Management
"The Organization of International Business" by Mark Casson delves into how firms decide to expand globally. Casson combines transaction cost theory and internalization theory to explore how firms choose to either network with other companies or handle operations internally. A key concept introduced is the difference between the costs of obtaining information and ensuring its accuracy. This blending of ideas sheds light on how companies manage their activities and how they learn as they grow internationally. Overall, the study shows that understanding these costs is crucial when firms decide on their global business strategies.