ABSTRACT
The international competition in service industries has received growing attention among researchers, corporate managers and policy-makers. This chapter investigates patterns of international competition of service multinational enterprises MNEs, encompassing firms based in different countries and nine different service industries. It examines two major arguments concerning the international competition of service (MNEs). The first argument relates foreign investment by service MNEs to global oligopolistic reaction, where firms play a tit-for-tat game of matching foreign investments in major markets. The second argument relates foreign investment by service MNEs to the competitive advantages of service industries. In international competition firms exploit those skills and routines which drive their home market success. The measure for global oligopolistic reaction should also be refined to incorporate the 'urgency' of firms 'counter-moves of matching foreign investment in major markets. Research examining strategies of a service MNE in countering a competitor's move by forming joint ventures, coalitions or networks would be most appropriate.
