ABSTRACT
A conventional weakness of MNE theory was a perceived failure to offer an adequate explanation of internationalization. Thus while there were theories to explain why MNEs existed, there were no credible explanations of why these firms were multinational in the first place. To some degree, this conceptual gap has been filled by emerging theories of internationalization. Internationalization is the process by which the MNE expands its geographic/spatial boundaries and consists of three interlinked processes:
1. geographical extension of the firm as it expands into new host markets; 2. extension of the MNE as its increases its market penetration within economies where it already
has a presence; 3. improved coordination between those locations where the MNE has a presence.
