Kogut and Zander's theory of evolutionary theory versus internationalization theory

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A firm can carry out its international trade activities in many ways, it can be done through licensing, or franchising, or exports through own sales representatives or through agents or contractors, or by the means of foreign direct investment. The internalization theory and the evolution theory explain about the existence of the MNE's but are very contrasting in their approach...
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In this essay, we will discuss how the evolutionary theory is a more satisfactory approach than the internalization approach for the existence of MNE's. Internalization theory of the MNE's The internalization theory was given by Buckley and Casson and is based on Coase's (1937) criticism of neoclassical economics (Pitelis, Christos N...
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