emphasis on the role of foreign ownership. Using a worldwide establishment panel dataset‚ we investigate how multinational subsidiaries around the world responded to the crisis relative to local establishments. We find that‚ first‚ multinational subsidiaries fared on average better than local counterfactuals with similar economic characteristics. Second‚ among multinational subsidiaries‚ establishments sharing stronger vertical production and financial linkages with parents exhibited greater resilience
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Jollibee and its Strategic control over its subsidiaries International Business and Politics: 2012 Word count: 1583 Pages: 6 1. Introduction Anil K. Gupta and Vijay Govindarajan argue in their article‚ “Knowledge flows and the structure of control within multinational corporations”‚ that mainly all previous research on strategic control within multinational companies (MNCs) has paid attention to why these choose to go abroad. They instead argue that for successful offshore business
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acquisition of a subsidiary. Traditional / Proportionate method The traditional measurement of goodwill on the acquisition of a subsidiary is the excess of the fair value of the consideration given by the parent over the parent’s share of the fair value of the net assets acquired. This method can be referred to as the proportionate method. It determines only the goodwill that is attributable to the parent company. Accordingly the NCI share of the net assets of the subsidiary determines the NCI
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foreign subsidiaries because each subsidiary must have adequate working capital to support its operations. If a subsidiary experiences a deficiency in inventory‚ its production may be delayed. If it is short of cash‚ it may be unable to purchase supplies or materials. If the parent of an MNC is aware of the working capital situation at every subsidiary‚ it may be able to transfer working capital from one subsidiary to another in order to solve temporary deficiencies at any subsidiary. Subsidiary Expenses:-
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strategy will influence the entry mode decision of the firm (MNC) and investigates whether acquisitions and Greenfield subsidiaries are being managed in the same or in a different way. Two types of international strategies for MNC’s 1) Global strategy: dominant strategic requirement: efficiency. As a result these firms integrate and rationalize their production. Subsidiaries act as ‘pipeline’ for headquarters and usually do not respond actively to local market demands. 2) Multidomestic strategy:
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Anne-Wil Harzing EXECUTIVE SUMMARY One of the most complex challenges that multinational corporations (MNCs) face is harmonizing the opposing forces of standardization versus localization. Based on a large-scale survey of headquarters (HQs) and subsidiaries of American‚ Japanese and German MNCs‚ we provide evidence that MNCs can no longer afford to define standardization simply as the worldwide adoption of HQ practices. Standardization can take place towards two different poles: HQ practices and global
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exchange loss account was $10‚000 on December 31‚ 2008‚ before any necessary year-end adjustment relating to the following: (1) Newsprint had a $15‚000 debit resulting from the restatement in dollars of the accounts of its wholly owned foreign subsidiary for the year ended December 31‚ 2008. (2) Newsprint had an account payable to an unrelated foreign supplier‚ payable in the supplier’s local currency unit (LCU) on January 15‚ 2009. The U.S. dollar–equivalent of the payable was $50‚000 on the December
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Development & Management Association Global Innovation in MNCs: The Effects of Subsidiary Self-Determination and Teamworkà Ram Mudambi‚ Susan M. Mudambi‚ and Pietro Navarra The ability of multinational corporations (MNCs) to leverage their innovation competencies across globally dispersed subsidiaries is an increasingly valuable source of competitive advantage. As multinational enterprises turn to foreign subsidiaries for research and development (R&D) and product development‚ questions arise
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Chapter 15 Multinational Restructuring Lecture Outline Background on Multinational Restructuring Trends in International Acquisitions Model for Valuing a Foreign Target Assessing Potential Acquisitions After the Asian Crisis Assessing Potential Acquisitions in Europe Factors that Affect the Expected Cash Flows of the Foreign Target Target-Specific Factors Country-Specific Factors Example of the Valuation Process International Screening Process Estimating the Target’s Value Changes
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the loss of its three Russian subsidiaries. This threat stems from issues encountered after entering the region in 1992 and then being hit with the Russian financial crisis of August 1998. As result‚ a steering committee comprised of three senior managers from Pibrex Region Europe North (PREN) exercised many anti-crisis initiatives including assigning newly appointed financial controller Elena Michailova with the task of auditing all three Pibrex Russian subsidiaries. Upon completion of Michailova’s
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