This is one of the most influential studies of multinational enterprises ever published. As a book that revolutionized the field, 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 it 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.