Abstract/Summary

International business strategy and international management are two distinct but related fields of study. This paper explores the connections between them. It shows how internalization theory can act as a bridge between them. The key is to analyse not only core activities, such as production, marketing and R&D, but support services such as human resource management, information technology, and corporate finance. Internalization decisions and location decisions must be analysed holistically, and diagrammatic techniques show how this can be done. These diagrams reveal the networks of communication and the hierarchical structures that emerge from such decisions.