“…For example, U.S. Department of Commerce data show that in the 1980s more than half of all the FDI into the U.S. was made in the form of acquisitions, a share which continued to rise in the 1990s. As has been argued in the resource-based and evolutionary perspectives, acquisitions are a mechanism used to exchange capabilities that are otherwise not possible to efficiently redeploy (Capron, Dussuage, and Mitchell, 1998;Seth, 1990;Lubatkin, Schulze, Mainkar and Cotterill, 2001). The exchange concerns both efficient deployment of existing capabilities in the host country, as in a FDI, and the internalization of new capabilities, bundled as a firm (Penrose, 1959;Wernerfelt, 1984).…”