“…When the decision is made to locate overseas rather than export or license, the TNC faces two interrelated decisions; 17 it needs to decide upon (i) a suitable host country within an overall region, and (ii) a specific province within the host country to invest in. A substantial number of empirical studies have identified the variables, both economic and institutional, which influence the TNC's choice of a given host country: labour costs (Kravis and Lipsey, 1982;Yamawaki, 1993); the availability of skilled labour (Hasegawa, 1996;6 hUallachain and Reid, 1992); market proximity (Thomsen, 1993); financial assistance (Taylor, 1993), and the existence of a business infrastructure 18 (Dunning, 1993;Yamawaki, 1993). The level of bureaucracy, socio-political stability, and other risk factors have been introduced in some econometric studies.…”