This innovative book contains key works which examine the current operations of large firms in the global economy. It explores vital areas of international strategy such as knowledge management, international transfer pricing, international joint ventures and alliances and issues of cross-border governance. All of this is accomplished within a consistent theoretical framework - the internalisation theory of the multinational firm. This framework is further extended to encompass contemporary issues such as coping with volatility in the modern world economy and the search for flexible strategies by multinational firms.