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MNC subsidiaries and country risk: internalization as a safeguard agains weak ixternal institutions

Country risk and foreign direct investment (FDI) are negatively associated, yet considerations such as rapid economic growth and lower factor costs are driving multinational corporations (MNCs) to significantly increase FDI into high-risk countries. How do MNCs deal with country risk on an ongoing basis after establishing majority or wholly owned operations? Analyses of 1983-96 data on a large sample of subsidiaries support our prediction that, under uncertainty, MNCs increase the extent of their within-firm sales. Trade internalization as a response to country risk is weaker for MNCs having greater experience deploying political strategies..Printed journal

Ketersediaan

Call NumberLocationAvailable
PSB lt.dasar - Pascasarjana1
Penerbit Academy of Management.,
Edisi -
Subjek Risk management
Organization theory
Political risk
Multinational corporations
Foreign subsidiaries
studies
Market entry
ISBN/ISSN 14273
Klasifikasi -
Deskripsi Fisik -
Info Detail Spesifik -
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