The theories explained thus far implicitly take a classical macroeconomic view, which places considerable emphasis on the workings of the "free market system." Note that these theories all employ the concepts of countries, resources, factors of production, and commodities.
The following theories emphasize microeconomic concepts and place at the center of their conceptual frameworks the business enterprise as the main agent of international trade. The focus of these theories is the MNC, which is able to use a specific advantage to move factors of production and/or commodities around the globe.
Four different theories about multinational corporations as agents of international trade in new products will be explored in the next few pages:
- The Comparative Advantage Theory
- The Imperfect Competition Theory
- The Appropriability Theory
- The Product Life Cycle Theory
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