Location theory: Location of FDI
Location theory: Standard Assumptions
Location theory: Host-Country Policies
Location theory: Economic Environment
Location theory: Technology and Agglomeration Economies
Location theory: Firm Strategy
Location theory: Empirical Research on FDI Location
Location theory: New Location Theory: Random Chance and Time
Location theory: Policy Applications
Location theory is frequently applied by researchers wanting to understand factors that influence where multinational firms (MNCs) choose to locate their foreign operations. Typically lacking data on the production costs of individual MNCs or data on anMNC’s costs in countrieswhere the firm does not operate, researchers tend to study features of the different locations that should make them more or less attractive, such as a country’s corporate tax rate. These features include factors related to a country’s policy, economy, and technology environments, and strategic considerations for individual MNCs. These are discussed in detail below.