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The purpose of this paper is to provide empirical evidence of international rent sharing in multinational enterprises. It looks at changes in rent sharing before and after the acquisition of a company by a foreign entity, and assesses the role of target and acquirer profitability in the wage setting process for the target firm. It therefore contributes to the evaluation of the impact of a form of globalization (inward foreign direct investment (FDI)) onto wages.

The authors use a unique firm level longitudinal dataset of M & As in Belgium between 1998 and 2010. The authors construct a micro-level dataset containing takeover and accounting information for target and acquiring firms. The empirical set up permits to net the estimates from selection effects in the choice of target firm, using propensity score matching and a difference-in-difference approach.

The authors find evidence that the deal does not significantly affect the degree of domestic rent sharing, but it enables international rent sharing. The authors qualify the results in terms of the acquirer’s location, industry link with the target and controlling stake. Further robustness specifications include different profits and controls, and a comparison with a sample of domestic acquisitions.

The sample of matches for acquired firms is constructed using propensity scores, which may not perfectly capture the differences between targeted and non-targeted companies. Although estimates should be net of selection effects, other sources of endogeneity may still make the estimates inconsistent.

Updating the discussion on the labor market consequences of globalization, and on foreign takeovers in particular.

The discussion on international takeover should take into account not only the extensive margin (i.e. labor adjustments) but also salaries. The authors argue that through a precise channel (rent sharing) international takeovers of domestic companies may benefit the domestic labor force.

The dataset was constructed for the purposes of this analysis; rent sharing is tested in a takeover scenario for the first time, thus avoiding selection biases.

The paper's objective is to demonstrate that marketing capabilities have positive effects on firms' international performance. These effects may be both direct and indirect. Marketing capabilities foster international commitment and influence the choice of international entry mode. Through these, marketing capabilities exercise an indirect influence on international performance.

First, based on arguments from the dynamic capabilities perspective, the dynamic theory of strategy and the transaction‐cost theory, the effects of marketing capabilities on international performance are discussed. A survey was carried out on Spanish and Belgian international firms to test the model. SEM was used to analyse the relationships established in the hypotheses.

The results show coincidences between the samples in relation to the positive influences of companies' marketing capabilities on economic international performance, international commitment and international entry modes. Moreover, there is also a positive and significant influence of high direct investment entry modes on international economic performance. However, there are differences in other relationships.

The results inform on the kind of entry modes that can be selected, based on firm marketing capabilities, and which of them provide better international results.

This paper confirms that marketing capabilities are at the core of the company's international decisions. Specifically, it demonstrates that marketing capabilities influence both the international commitment of the company and the selection of the appropriate international mode of entry.