Abstract/Summary

This paper introduces economic history as a new stream of IB research. It offers a long-term perspective on how international business has evolved over time, focusing on the interplay between multinational enterprise and the nation state. There is rivalry between nation states as well as competition between firms. These two forms of conflict interact. Nations use their leading firms as instruments of international policy, while leading firms rely on political and financial support from home nations. Using historical evidence and cross-country comparisons, the paper explains has the scale and scope in international business activity has changed dramatically over time.