It is based on the resulting desired effects which include: ownership advantages; location advantages; and benefits of internalization (Agarwal & Ramaswami 1991). Ownership advantages relate to an organization's development capacity (particularly differentiated products), its multinational experience, and the size of the organization. These components represent the skills and resources of an organization. Ideally, for any organization to compete successfully with other companies in the host country, it must possess a superior or advanced set of these resources and competencies to enable it to achieve significant economic returns that can overcome the higher costs it will incur in the service the foreign market (Agarwal and Ramaswami 1991). Furthermore, with the ability to produce differentiated products, an organization or company possesses higher modes of control which ultimately leads to greater efficiency. This practice is supported by empirical data observed by Coughlan and Flaherty (Coughlan & Flaherty 1983). An organization requires substantial resources during international expansion to protect itself from high marketing costs, achieved economies of scale, and the enforcement of contracts and patents (Hood & Young 1979). The size of the organization would naturally indicate its cost absorption capacity. According to Buckley and Casson, that of an organization