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Journal of International Business Studies

, Volume 31, Issue 1, pp 155–167 | Cite as

Do World Product Mandates Really Matter?

  • Susan E. Feinberg
Article

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.

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Copyright information

© Academy of International Business 2000

Authors and Affiliations

  • Susan E. Feinberg
    • 1
  1. 1.University of Maryland

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