Over the past decades, foreign direct investment (FDI) has grown significantly. The role of multinational corporations (MNCs) has become more important in terms of facilitating the process of economic globalization. Nevertheless, while conducting investment overseas, MNCs inevitably face the uncertainty of political risks, including militarized conflict, in host countries, which may deter MNCs' investment and lead to decrease in FDI inflow. Based on this logic, commercial liberalism argues that commerce cannot exist in a conflicting environment. MNCs and FDI tend to promote peace between nations since they deepen inter-state economic interdependence. By illustrating the role of militarized conflict in the concept of political risk, this paper investigates the preceding argument from MNCs' perspective and argues that the sectoral heterogeneity of MNCs leads to their different perceptions of and responses to militarized conflict. Different from a stereotype that MNCs in the primary sector tend to be more sensitive to militarized conflict than others in different sectors, this paper argues that FDI inflow in the manufacturing sector is more susceptive to militarized conflict, because this type of MNC is more likely to be affected by the changes of business environment in a host country. By utilizing U.S. sectoral FDI data from 1982 to 2004, this paper tests the preceding hypothesis. Statistical results support the argument and show that only MNCs in the manufacturing sector are negatively associated with militarized conflict.