ABSTRACT

Organisation and planning of production and other aspects of product policy may have an important influence in the quantitative and qualitative level of employment in the subsidiaries and are, therefore, of a serious concern to the employees. Most of the other studies which tested the autonomy of subsidiaries were limited to large multinational enterprises with locations in a great number of countries and realising a sizeable proportion of their total sales volume in foreign markets. The relationship between the degree of autonomy of the subsidiary and its size have been studied more often than the size of the parent company. In one of the first major studies about American investment in a European country, J. Dunning concluded that about one third of the US manufacturing subsidiaries in Britain were "strongly controlled" by the parent company.