Rugman and Verbeke

Rugman and Verbeke are researchers who developed a framework called the "internalization theory" to explain how multinational companies expand globally. They emphasize that firms choose international markets and operations based on overcoming costs and accessing resources efficiently, often by internalizing transactions within the company rather than through outside contracts. This approach helps firms manage risks and protect valuable knowledge across borders. Their work highlights the importance of understanding the unique strengths of each country and region, shaping how companies strategize their global presence and optimize their resources efficiently.