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.
This is a preview of subscription content, log in to check access.
Buy single article
Instant access to the full article PDF.
Price includes VAT for USA
Subscribe to journal
Immediate online access to all issues from 2019. Subscription will auto renew annually.
This is the net price. Taxes to be calculated in checkout.
*Susan E. Feinberg is Assistant Professor of International Business at the Robert H. Smith School of Business, University of Maryland. Her research focuses on firm, country and industry determinants of MNCs' location decisions, and the impact of foreign direct investment on domestic industry.
About this article
Cite this article
Feinberg, S. Do World Product Mandates Really Matter?. J Int Bus Stud 31, 155–167 (2000). https://doi.org/10.1057/palgrave.jibs.8490894