Home and host country location advantages

4 important questions on Home and host country location advantages

What is defiend as location advantage? (FSA)

Entire set of strengths of a location, and accessible by firms in that location. Should always be assessed relative to the strengths of other locations. (both home country or host country)

What are the drivers of Host country location advantages?

Push the firm to want to locate somewhere in the first place and motivation to internationalize, to perform activities in a host country, FDI

According to Grant's paper (1991) what are the criticism of porter's diamonds model?

  • Tautological
  • The framework is more descriptive than predictive
  • Operationalization of many factors is difficult
  • Less applicable to small open economies and to resource-rich economies
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What is firm strategy, structure and rivalry in the context of Porters daimond?

The conditions in the nation governing how companies are created, organized, and managed, and the nature of domestic rivalry are all important in building international competitveness.

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