A trend among MNEs is to replace expatriates in foreign subsidiaries with local managers. Discuss the implications of that policy from the standpoints of (a) the control of foreign subsidiaries, and (b) the development of managers with significant international experience and expertise. Does it mean decision making will necessarily be decentralized?

Historically, many foreign firms that competed in the European marketplace established an extensive network of highly autonomous local subsidiaries. However, as Europe has evolved into a single market via the EU, those same firms have often been frustrated in their efforts to shift from a multidomestic to a regional (European) strategy. Discuss the reasons for this and suggest mechanisms firms might use to accomplish the shift. Finally, compare the strategic advantages of a long-established multidomestic-type organization to a newly established regionally oriented firm.