First, the limited of foreign direct investment has to be focus, there are 2 influenced factors which are the impact from outside and management mind. The external factors that may have impeded the internationalization of the firms in the study include small firm size as a function of the small size of the economy, monopolistic, duopolistic and oligopolistic industry structures, the government's protection of local industries via trade barriers, physical isolation from major markets, large psychic distance from the Asia-Pacific region and a wide and shallow range of manufacturing industries. The notion of 'protection all around which became accepted in Australia from the 1920s, although welcomed at the time, must have been particularly debilitating in terms of competitiveness for Australian firms. This business and institutional environment has referred to as 'liabilities of origin' which may have constrained the development of the firms' competitive advantages.