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How can international firms select beneficial foreign locations for their international operations?

How can international firms select beneficial foreign locations for their international operations?

MARWAN N. AL QUR’AN AND LAURIE DICKIE, CURTIN UNIVERSITY OF TECHNOLOGY, AUSTRALIA

International firms (IFs) as a product of globalization contribute significantly to global economic development. One of the most challenging and strategic decisions confront international firms is ‘where in the globe to locate their international operations’. Therefore, this paper reviews and analyzes the literature on strategic decision-making and international business so as to respond to the paper main question: viz., ‘what is the most appropriate decision-making approach for the selection of beneficial foreign locations for international operations’? The paper suggests that, due to the high levels of risk and uncertainty associated with international location decisions, the satisficing decision-making approach would be the most appropriate approach for selecting beneficial foreign locations for international operations. Further, a conceptual framework for the foreign location selection decision-making in international business is proposed at the end of the paper.
Keywords: International Firms (IFs); Beneficial Foreign Location Selection; International Operations; Strategic Decision-making (SDM); Foreign Direct Investment (FDI).

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6- MARWAN-Itemid=.pdf