Abstract

International direct investment has a sunk cost nature of multinational manufacturers with single-country difference is that the former has the overseas assets of the sinking, sinking the latter is entirely in the domestic assets; multinational companies overseas assets and the sinking of the low marginal cost associated with direct changes It is in the host country market competition, and indirectly affect the behavior of competitors. Generally speaking, this structural change given different levels of competitive multinational strategic advantage, mainly three points: often lead to lower marginal cost competitors retreat of the market reaction will help multinational companies to obtain greater , more stable overseas market share; the formation of high sunk costs of overseas market entry barriers to protect the market position of transnational corporations; multi-country multinational companies with sunk costs will increase the reach of its major competitors, the more stable market opportunities for collusion