Location, Competitiveness, and the Multinational Enterprise

Alan M. Rugman and Alain Verbeke

in The Oxford Handbook of International Business

Second edition

Published in print January 2009 | ISBN: 9780199234257
Published online September 2009 | e-ISBN: 9780191577086 | DOI:

Series: Oxford Handbooks in Business and Management C

Location, Competitiveness, and the Multinational Enterprise

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This article provides an overview of the key insights resulting from recent international business research on the interactions between location advantages and the competitiveness of multinational enterprises (MNEs). It consists of four main sections. First, the evolution of the location advantage concept in the international economics literature is discussed. Here, it appears that the international economics literature has substantially broadened its analytical scope in the last few decades. However, the field of international business research had gone even further in its analysis of the interactions between location and MNE competitiveness because of its in-depth focus on the actual behaviour of MNEs. The complex nature of location advantages for MNEs is discussed in more detail in the second section. The third section describes the intellectual foundations of a spatial analysis of MNE activities. Finally, the fourth section discusses the relative contribution of home country specific advantages (CSAs) and host CSAs to MNE competitiveness.

Keywords: multinational enterprises; competitiveness; international economics literature; international business; country specific advantages; spatial analysis

Article.  14762 words. 

Subjects: Business Strategy ; International Business

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