| Growth, Capital Market Development and Competition for Resources within MNCs |
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Professor Susan Feinberg Susan Feinberg and Gordon Phillips look at the factors that affect the growth of multinational firms. In particular, they focus on whether MNCs systematically grow by allocating resources away from divisions in some countries to expand in others. Feinberg and Phillips examine the association between the employment growth of a unit of the MNC and the attractiveness of the MNC’s growth opportunities in other markets. They find that when U.S.-based MNCs have more attractive growth opportunities in their overseas subsidiaries, they experience higher growth in the parent company in the U.S. Specifically, MNCs with efficient networks of foreign subsidiaries in high-growth countries experience more employment growth in the U.S. than MNCs with less efficient foreign subsidiaries in relatively slow-growth countries. In contrast, the foreign subsidiaries of U.S.-based MNCs grow more slowly when the U.S. parents have attractive opportunities in the U.S. The extent to which the growth of foreign subsidiaries is negatively affected by growth opportunities in the U.S. depends upon the financial and knowledge resources of the MNCs and characteristics of the countries in which the subsidiaries are located. Susan Feinberg is an Assistant Professor of International Business at the Robert H. Smith School of Business, University of Maryland. Her research focuses on the economic and policy environment and its relation to the operations of multinational firms (MNCs). Her work has been published in economics and management journals and has been cited in numerous national and international magazines and newspapers. In 2000, she testified before a Congressional Commission on the significance of U.S.-Canada intra-firm trade in the U.S. trade deficit. Last year, at the invitation of the United States Department of State, she spoke to an audience at the United States Chamber of Commerce in Haiti about economic reforms in emerging markets. Most recently, she was asked to be on the International Economic Advisory team for the John Kerry campaign. Please register by sending email to jesse.parker@tufts.edu. |