Locate the home base to support competitive advantage. Among the most important decisions for multinational companies is the nation in which to locate the home base for each distinct business. A company can have different home bases for distinct businesses or segments. Ultimately, competitive advantage is created at home: it is where strategy is set, the core product and process technology is created, and a critical mass of production takes place. The circumstances in the home nation must support innovation; otherwise the company has no choice but to move its home base to a country that stimulates innovation and that provides the best environment for global competitiveness. There are no half-measures: the management team must move as well.