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The internalization of societal failures by multinational enterprises

Networked Multinational Enterprises in the Modern Global Economy

Peter J. Buckley and Jean J. Boddewyn

The purpose of this paper is to show that the market-internationalization framework can be applied to non-economic institutions because society's non-market sub-systems – political, social and cultural – are subject to failures just like economic markets, and firms can contribute to their repair or replacement by selectively, strategically and responsibly internalizing the market and non-market arenas for these sub-systems' functions.

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Jean J. Boddewyn