ABSTRACT

The preceding chapters explained that MNEs are a dominant force in today’s international business activities ( Chapter 4 ), and that activities such as trade and FDI are largely determined by comparative advantages of nations ( Chapters 2 and 3 ). So how are MNEs and comparative advantages of nations linked? How do national advantages in a foreign country influence MNE strategies? If these advantages are important to national wealth, social welfare, and business operations, then how are these advantages determined, established, and maintained? We explain these issues from a country competitiveness perspective.