During the constant research of internationalization, firms have been focused on as it is the main body that implements strategies. However, the role of a country in the process of internationalization has been ignored for a long time. Where does country-specific advantage come from? What’s the relationship between country-specific advantage and firm-specific advantage? These questions haven’t been understood clearly yet. Home country provides necessary infrastructure, service conditions, resources and institutions guarantee, which is the origin of firm’s core competition advantages; while host country’s characteristic will influence the way and path of internalization. It is of great significance to understand how to transform country-specific advantages into firm- specific advantages in the process of internationalization of multinational firms.