*Materi ekonomi manajemen internasional Theory of comparative advantage Multinational businesses are increasing over time. Some of this growth is due to an increase in understanding that specialization by a country can increase production efficiency. Some countries, such as Japan and the US, have technological advantages, while other countries, such as Jamaica, Mexico and North Korea have an advantage in basic labor costs. If a country specializes in several products, the country may not produce other goods, so trade between countries becomes important. This is the argument put forward 2. Product Cycle Theory One well-known explanation of why companies become MNCs (multinational companies) is product cycle One well-known explanation of why companies become MNCs (multinational companies) is product cycle theory. According to this theory, the company will develop in the original market because of several advantages over its current competitors, such as the existence of market need...