In this paper, we collect and contrast theoretical arguments on the benefits and costs of internationalization and develop a comprehensive and structured overview of different theoretical concepts. We also critically evaluate these concepts in terms of their practical importance: this refers to both the relevance for multinational firms (MNEs) today, and to the specificity or applicability to what we term benefits and costs from a financial accounting perspective. We find a slight overweight of positive financial effects of internationalization, which – however – is less clear as might practically have been assumed. Without directly incorporating contextual or management aspects, we are unable to draw theoretical inference on a strong positive or negative development of financial positions. This paper therefore provides a conceptualization of different cost and revenue developments – nothing more, but also nothing less.
