Models of the Multinational Enterprise

Flexibility is identified as the hallmark of recent modelling of the multinational enterprise. The focus on flexibility is a response to the rationalization and res-tructuring of interna-tional business, which has oc-curred since the end of the "golden age " of Western eco-nomic growth. Flexibility has been sought in factor markets, intermediate product markets and markets for final products. It has been sought by both governments and firms. Flexi-ble firms are attracted to loca-tions with flexible host gov-ernments. This article contrasts the modern research agenda based on flexibility with the more traditional research agen-da which predominates in the literature reviewed by Ca-ves (1996)