Do World Product Mandates Really Matter?

Susan Feinberg

Journal of International Business Studies, 2000, vol. 31, issue 1, 155-167

Abstract: This paper examines whether MNC subsidiaries with world product mandates fared better than non-specialized subsidiaries in the face of Canada-U.S. trade liberalization. Using confidential affiliate-level panel data on 445 Canadian subsidiaries of U.S. MNCs, empirical analysis finds that affiliates with higher levels of R&D and human capital resources grew relatively more when trade was liberalized. However, R&D- and human-capital-intensive affiliates experienced systematically different growth patterns. The findings imply that world product mandates do reduce affiliates' vulnerability to downsizing, and that human capital development and R&D may be equally important in building world product mandates.© 2000 JIBS. Journal of International Business Studies (2000) 31, 155–167

Date: 2000
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