Research: How Should Multinational Firms Navigate Local Rules?


Multinational companies seeking growth opportunities often find them when they enter new countries. Previous research has emphasized the liabilities of foreignness, i.e., the many disadvantages foreign companies face as they do business in new markets. To overcome these liabilities, corporations are often recommended to adapt to local rules. However, as they adapt their strategies and practices to local ones, they risk losing the very basis for their internationalization and advantage over local competitors: the integration of operations across markets.





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