Controlling the subsidiary
Managing at a distance for the first time brings new problems for the firm. Thus while the last three chapters have concentrated on the establishment of a successful overseas production subsidiary, this chapter puts the emphasis upon methods of ensuring continuing operational success. Consequently control procedures will be related to success, for in the absence of data or experience the choice between allowing the overseas production subsidiary a great deal of autonomy (which has the risk of local management ruining the venture) and strict control (which may stifle all enterprise in the overseas unit) is a very difficult one to make.
KeywordsHost Country Chief Executive Intermediate Good Transfer Price Capital Expenditure
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