Two approaches may explain how multinational enterprises (MNEs) select ownership structures for subsidiaries. The first argues that MNEs prefer structures that minimize that transaction costs of doing business abroad. The second argues that ownership structures are determined by negotiations...

Purpose – The author defines and discusses the three laws of business combinations that are essential to a profitable use of resources. Design/methodology/approach – The author shows how applying these laws is necessary for success. Findings – All business combinations must have the...