Home and host country

Surender Munjal*

*Corresponding author for this work

Research output: Chapter in Book/Published conference outputChapter


Ever since the seminal works of Adam Smith’s (1776) The Wealth of Nations and “comparative advantage theory”, there is a long tradition of disaggregating the world into nation states and examining the global economy by reference to the interaction between them. Scholars have used this idea extensively to develop theories of international business (IB) and define key terms— such as foreign direct investment (FDI), multinational enterprise (MNE), home country and host country— necessary to advance IB scholarship.

Foreign direct investment (FDI) is generally defined as an investment undertaken by an enterprise in another enterprise in a foreign country with lasting interest. The enterprise that undertakes FDI is known as a multinational enterprise (MNE), the country from where it originates or where it has its headquarters is referred to as the home country of the MNE, and the country where FDI is undertaken is known as the host country.
Original languageEnglish
Title of host publicationEncyclopedia of International Strategic Management
EditorsChristian Geisler Asmussen, Niron Hashai, Dana Minbaeva
PublisherEdward Elgar
Number of pages3
ISBN (Electronic)9781800884045
ISBN (Print)9781800884038
Publication statusPublished - 29 Feb 2024


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