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International Business: An Asia Pacific Perspective, Second Edition by Andrew Delios

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9. Multinational Enterprise

Over the last few decades, multinational enterprises, or multinational firms, have increased both in number and size. This growth in multinational firms has been a major development that has contributed to rapid increases in the globalization of many national economies. The growth of multinational enterprises has been along two dimensions: growth in the size of existing multinational firms and growth in the absolute number of multinational firms.

As multinational firms grow, they increase the number of foreign subsidiaries situated worldwide. The foreign subsidiary and parent firm relationship as captured in a multinational enterprise is just one way to organize business activities. In this chapter, we outline several ...

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