ABSTRACT
This chapter examines the theory of internalisation as applied to the multinational enterprise (MNE) and, in particular, to European business. Internalisation theory is the pre-eminent explanation for the existence of MNEs and for more than four decades has remained relevant in the face of changes in the strategy and structure of international businesses. The theory has evolved to explain internationalisation across a range of industry sectors, types of firm and governance modes.
