0136091008_PPTsM18_Eiteman0136091008_12_MBF_C18课件.pptVIP

Chapter 18 Foreign Direct Investment Theory and Political Risk Sustaining and Transferring Competitive Advantage In deciding whether to invest abroad, management must first determine whether the firm has a sustainable competitive advantage that enables it to compete effectively in the home market. The competitive advantage must be firm-specific, transferable, and powerful enough to compensate the firm for the potential disadvantages of operating abroad (foreign exchange risks, political risks, and increased agency costs). There are several competitive advantages enjoyed by MNEs. Sustaining an