This study of multinational enterprises revolutionized the field when it was first published. It includes a critical examination of empirical observations about FDI, offers a long-run theory and other alternative theories of the multinational enterprise, as well as looking at the world’s largest firms and offering predictions and policy implications. This resulted in the internalization theory that has influenced much research on FDI since this title was first published in 1976. To mark the 25th Anniversary, the authors have included a new introduction, which reflects on the enduring impact of the book.