Competitive advantage-fostering foreign direct Investment: A survey of the literature

Abstract

With fierce inter-firm competition and the increasing mobility of strategy resources competitive advantage- fostering FDI have come into being. It's strategic intent is to aim at enhancing transnational s'competition strengthen by strategy competition to change market status or sourcing resources such as local technology and knowledge that complement their core competences. The type of FDI may make transnationals without competitive advantages over host rivals come up in foreign locations with high-quality physical and human infrasture and commercial ethos towards mergers and acquisitions. Studies on the type of transnational corporations have suggested that fostering competitive advantages may be strategy motive when firms embark on foreign producion, FDI can improve business performnance and increase production efficiency.