Three types of host country
*Developed countries
High level of economic and industrial development
*Less developed countries (LDCs)
Low economic or industrial development
*Newly industrialised countries
Emerging LDCs-major exporters of manufactured goods.
Each has its own set of factors which might encourage or discourage investment.
Factor conditions
Factors can be categorized into two forms:
“Home-Grown” resources/Highly specialized resources
“Natural” endowments
In “Home-Grown” resources, Porter pointed out the local concentration of skilled lab our, including the different schools of film, in analyzing Hollywood’s dominance in movies.