There are three prerequisites that must be met by the MNC to contend with the local firms even though the disadvantages of the former as a foreigner, ".(1) it must have market power that derives from ownership of some specialized knowledge, (2) it must consider the particular foreign location advantageous for new investments relative to alternative locations including its home market, and (3) it must prefer FDI over exporting and licensing by the usual internalization logic" (Ibid, 110). The product cycle ".theory argues that firms invest abroad when their main products become "mature" in domestic markets. As the initial high-growth stage of domestic product commercialization ends and the domestic market becomes saturated, the firm begins to look for new sources of demand abroad in order to maintain its growth. This is achieved by establishing foreign subsidiaries with lower costs so that the firm can remain competitive in its home market while also improving its access to foreign markets" (Ibid, 383). In the obsolescing bargain theory a firm that has invested in a host country starts with a good bargaining position with the host country"s government because of firm-specific advantages such as superior technology, access to capital markets, and access to final product markets (Ibid, 111). Once the firm has made an investment, however, the bargaining advantage may slowly shift to the host country (Ibid, 111). The oligopoly theory of foreign investment contends that firms move abroad to exploit the monopoly power they possess through such factors as unique products, marketing expertise, control of technology and managerial skills, or access to capital (Ibid, 111). In the battle for profits and market share, firms engaged in oligopolistic competition may move abroad as part of their overall competitive strategy (Ibid, 111). They may move aggressively to exploit a new foreign market in the hope that this action will give them a permanent advantage over their competitors (Ibid, 111).