ABSTRACT
Regardless of a firm's nationality, foreign direct investment (FDI) and exports are prominent among the international strategies used by leading food and beverage manufacturing firms. Measured in terms of the value of international sales, for the world's leading firms FDI is roughly four times more important than exports (Henderson and Handy 1993). Yet, both foreign investment and export propensities vary widely among firms. For example, sales from foreign affiliates as a share of total corporate food and beverage sales range from zero to more than 60 percent [The Coca-Cola Company] for U.S. firms, and to more than 95 percent [Nestlè SA] for non-U.S. firms. Exports as a share of total sales range from zero to more than 30 percent [Riceland Foods] for U.S. firms and 55 percent [LVMH Moet-Hennessy Louis Vuitton] for non-U.S. firms.
