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Abstract Overall, globalization can be considered as the broadening, strengthening and growing force of a global interconnection. The conception of globalization has made it possible to map experiential patterns of worldwide relations and linkage of human activity from cultural to military. As companies expand globally, they need to understand how to compete successfully in each marketplace. Companies need to assess each local opportunity and market and understand the related influences on the customers. As companies discover new international markets, they must also face new workplace challenges, such as selecting appropriate overseas personnel and building and maintaining cross-cultural teams.
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A common way to make strategic asset-seeking investments is through acquiring assets of foreign company in order to replenish or increase the company’s current assets. Strategic assets are often sought through merging or acquiring assets of foreign companies to gain competitive advantage in a new market and to promote long-term strategic objectives. The MNEs that are prompted by this type of OFDI are commonly established MNEs that aim for an integrated international or regional strategy, and new foreign direct investors that look for acquiring a competitive strength in a foreign market. The main motive for strategic asset seeking OFDI is to leverage of minimizing a particular cost or marketing advantages over the competing MNEs international portfolio of physical assets and skilled labour competences. Thus, strategic-asset seeking OFDI enable companies to increase their ownership-specific advantages or decline other companies’ competitiveness.