Location, Competitiveness, and the Multinational Enterprise

Alan M. Rugman and Alain Verbeke

in Oxford Handbook of International Business

Published in print August 2001 | ISBN: 9780199241828
Published online November 2003 | e-ISBN: 9780191596834 | DOI:
Location, Competitiveness, and the Multinational Enterprise

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An overview is given of the key insights, resulting from recent international business research on the interactions between location advantages and the competitiveness of multinational enterprises (MNEs). There are four main sections. The first discusses the evolution of the location advantage concept in the international economics literature; the complex nature of location advantages for MNEs is more fully discussed in the second section. The third section describes the intellectual foundations of a spatial analysis of MNE activities. The fourth section discusses the relative contribution of home country‐specific advantages (CSAs) and host CSAs to MNE competitiveness: it concludes that host CSAs may become increasingly important in achieving global competitiveness.

Keywords: competitiveness; country‐specific advantages; location advantage; market competition; multinational enterprises; spatial analysis

Chapter.  10511 words.  Illustrated.

Subjects: International Economics

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