This study examines the impact of MNC parents on the cost of doing business abroad (CDBA) of their foreign subsidiaries in emerging markets. Based on a case research, we found that MNC HQs can influence the activity‐based CDBA of their foreign subsidiaries through policies on technology royalties, expatriate expenses, and through helping the export business of their subsidiaries. Theoretical implications of these findings are discussed.
Multinational Business Review – Emerald Publishing
Published: Nov 19, 2008
Keywords: Emerging markets; MNC; Cost of doing business abroad (CDBA); Foreign subsidiaries
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