MNEs possession and leveraging of certain valuable, rare, hard-to-imitate, and organizationally embedded (VRIO) assets overseas in the context of FDI refer to:

Question

Quizplus · Accepted Answer

Possession and leveraging of VRIO assets overseas in the context of FDI is known as ownership advantage. This means that the MNE has specific advantages or resources that make it more competitive than other firms in the foreign market. These advantages can include proprietary technology, specialized knowledge, brand recognition, economies of scale, and access to key inputs or distribution channels. The ownership advantage is a key factor that motivates MNEs to invest overseas and maintain control over their foreign operations. Ownership advantage refers to the possession and leveraging of VRIO assets by multinational enterprises (MNEs) overseas in the context of Foreign Direct Investment (FDI). These assets are unique to the MNE and difficult for competitors to imitate, providing a competitive advantage in foreign markets. This advantage allows MNEs to access foreign markets more easily and potentially earn higher returns on investment.

MNEs Possession and Leveraging of Certain Valuable, Rare, Hard-To-Imitate, and Organizationally