Roles of Subsidiaries to Parent and Motivations Justifying Their Presence in Developing Countries (DCs): Synthesis of Literature

Alexis Abodohoui, Bolarinwa Osunlalu, Nie Guihua

School of Management, Wuhan University of Technology, Wuhan, China.
United Nations Economicand Social Commission for Asia and Pacific.

DOI: 10.4236/ib.2013.53B026                

Abstract

This paper reviews different policies and looks in some detail at the factors influencing the choice of development of subsidiaries in developing countries. It shows also that the subsidiaries play an important role to the MNC units. We review in this paper some of motives for international transfer, control, coordination, investment, and development of new capability. This research highlights the peculiarities in African business world and improves the strategies about the optimization of the investment in developing countries.

Keywords

Subsidiaries; Parent; Motivations; Developing Countries

Conflicts of Interest

The authors declare no conflicts of interest.

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