Setting the Record Straight: Hymer, Internationalization Theory and Transaction Cost Economics

Along with the rise and development of transaction cost economics, Stephen H. Hymer's works have recently become a matter of some controversy. This note clarifies the main issues in the controversy and explores the contributions of Hymer's theory of the MNE. A review of Hymer's works reveals that he had incorporated a Coasian theory of firms and markets in his theory as early as 1968. This note suggests that the genesis of transaction costs as...