Local Value Chains in European MNEs

Ghemawat’s work in international business strategy demonstrates that Multinational Enterprises (MNEs) create value both by overcoming and exploiting the price differences exist at country borders. This paper evaluates investment strategies of MNEs with subsidiaries 10 Central Eastern Europe countries (CEEs) had joined European Union 2007 through lens this insight. The data show subsidiaries’ activities vary parent MNE’s home location. CEE Western are more likely to be producing output can traded across borders, particularly when their differs from main product company. findings suggest tend invest fragment chains region, factor cost arbitrage opportunity a semiglobalized world.