Home and host country location advantages - Host country location advantages

3 important questions on Home and host country location advantages - Host country location advantages

What are the 5 motivations to internationalize?

  • Market seeking
  • Efficiency seeking
  • Resource seeking
  • Strategic asset seeking
  • Export platform

What are the three types of advantages that makes going abroad make sense?

  1. Ownership advantages (FSAs)
  2. Location advantages (attractiveness of the host country)
  3. Internalization advantages (advantages of doing-it-yourself)

What is a Foreign Direct Investement (FDI) ?

Investing abroud to build upon knowledge of host countries. FDI is the allocation of resource bundles by an MNE in a host country, with the purpose of performing business activities over which the MNE retains strategic control in that country

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