IDEAS home Printed from https://ideas.repec.org/p/cbr/cbrwps/wp128.html
   My bibliography  Save this paper

FDI, the Location Advantages of Countries and the Competitiveness of TNCs: US FDI in Professional Service Industries

Author

Listed:
  • Lilach Nachum

Abstract

This paper seeks to examine the impact of the foreign activities of firms on their international competitiveness. It addresses questions such as: to what extent and under what conditions can firms compensate for deteriorating location advantages of their home country and maintain their lead in an industry through investment in foreign countries? Under what conditions can firms reap the benefits of a locationally advantageous foreign country? These questions are examined with reference to selected US professional service industries. The findings show that FDI weakens the link between the location advantages of home countries and the ownership advantages of firms, as it enables firms to develop advantages which are not directly related to the location advantages of their home countries. However, this impact is very moderate, and is exercised through the indirect impact of FDI on the advantages of firms and countries. The ownership advantages which firms develop in their home countries are the most critical determinant of their competitiveness.

Suggested Citation

  • Lilach Nachum, 1999. "FDI, the Location Advantages of Countries and the Competitiveness of TNCs: US FDI in Professional Service Industries," Working Papers wp128, Centre for Business Research, University of Cambridge.
    • Handle: RePEc:cbr:cbrwps:wp128
    Note: PRO-1
    as

    Download full text from publisher

    File URL: https://www.jbs.cam.ac.uk/cbrwp128/
    Download Restriction: no
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbr:cbrwps:wp128. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ruth Newman (email available below). General contact details of provider: http://www.jbs.cam.ac.uk .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.