ABSTRACT
Multinational corporations (MNCs) are increasingly dominating the world economy. U.S. companies have expanded their markets by opening foreign subsidiaries in ever-increasing numbers. European and East Asian companies have also extended their reach since the late 1980s by opening subsidiaries across the globe (Shuter & Wiseman, 1994). According to Bartlett and Ghoshal (2000), MNCs account for more than 40% of the world’s manufacturing output and almost a quarter of world trade. About 85% of the world’s automobiles, 70% of computers, 35% of toothpaste, and 65% of soft drinks are produced and marketed by MNCs.
