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The Cost of Doing Business Abroad in Emerging Markets and the Role of MNC Parent Companies

Roger (Rongxin) Chen (Professor of strategy management in the School of Business and Management at University of San Francisco)

Multinational Business Review

ISSN: 1525-383X

Publication date: 19 November 2008

Abstract

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.

Keywords

Citation

Chen, R.(R). (2008), "The Cost of Doing Business Abroad in Emerging Markets and the Role of MNC Parent Companies", Multinational Business Review, Vol. 16 No. 3, pp. 23-40. https://doi.org/10.1108/1525383X200800012

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Publisher

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Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited

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