A global system view of firm boundaries

This paper applies the global system view to the location and control strategies of firms. This approach envisages the world as a grid of potential locations for value-adding activities, connected by flows of information and products. The simplified model provides a basis for testing new hypotheses on the number of firms that will exist in the global system, their locations, and their organisational boundaries. The paper provides a rigorous and formal exposition of the theories of internationalisation and the multinational enterprise. journal of International Business Studies.