The Multinational Advantage (theory)

The Multinational Advantage theory suggests that companies operating in multiple countries can achieve greater success than those that are domestic-only. This advantage comes from accessing larger markets, diversifying risks, benefiting from local resources, and optimizing production costs. By leveraging different economic conditions, labor forces, and consumer preferences globally, multinationals can enhance innovation and increase efficiency. Essentially, being multinational allows companies to compete more effectively, adapt to local needs, and maximize profits by spreading their operations across various regions.