The purpose of this report is to analyse the location strategies by the firm, geographical diversification and its affects to the firm’s growth and development. The internalization of the firm and its geographic diversification for the core or non-core business is necessary. This report has generally degraded the role of the location choices and the location strategies because of direct foreign investment. At the time of 1980s years the geographical range of foreign direct investments was very much low but now days it is very higher and more than 60% companies are going for international diversification.These times the specific location target and marketing strategies have been become very important. By the year 2007, the total foreign investment has reached by $2 trillion with a stock of more than $16 trillion.