The article provides an overview of the key insights resulting from international business research on the interactions between location advantages and the competitiveness of transnational corporations and FDI. It describes the relative contribution of home country specific advantages and host country specific advantages to transnational corporations' competitiveness; it concludes that host country specific advantages, and in this case particularly Republic of Moldova's country specific advantages, may become increasingly important to integrate into European Union, to achieve global competitiveness and to attract FDI.