Home country influences drive international business strategies and outcomes globally.
The home country of a company affects how it does business internationally. There are eight main factors that influence this: comparative advantage, comparative disadvantage, country-of-origin advantage, country-of-origin liability, institutional learning, competitive learning, institutional escape, and competitive escape. These factors help explain why companies from different countries trade and invest in foreign markets in specific ways. The research also points out that home country factors can impact how companies respond strategically and how they connect with other countries.