Question
When firms decide to invest in foreign countries, their decision is based on the competitive advantage of the firm as well as those of the
When firms decide to invest in foreign countries, their decision is based on the competitive advantage of the firm as well as those of the host country. What are some of competitive advantages enjoyed by both the firms and host nations?
a. | The competitive advantages enjoyed by MNEs include economies of scale and scope, managerial skills, marketing expertise, technology, financial competitiveness, and differentiated products. | |
b. | The competitive advantages enjoyed by MNEs include economies of scale but not scope, managerial skills, marketing expertise, technology, financial competitiveness, and differentiated products environment | |
c. | The competitive advantages of host nations include cheap and abundant factors of production, favorable domestic market conditions, an abundance of suppliers, and a sound investment | |
d. | a and c |
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