Internalisation as a general theory of foreign direct investment: A critique

Conclusions The theory of internalisation does provide an explanation of certain types of FDI activities by MNEs. In particular, there are three areas where internalisation appears to provide an explanation of FDI as a specific form of international involvement by the MNE: these entail vertical integration, transfer pricing and quality control Buckley, Casson, 1976; Casson, 1983].