Line of Business DiversificationFormanyMNCs,lineofbusinessdiversificationrepresents a seconddimension of evolutionIthasbeenmorecommonto speakof“thecountry subsidiary" as if it were monolithic,yet it is clear that most MNCs ramp up theiractivities over time, rather than entering in allinesofbusinessatonce
Line of Business Diversification For many MNCs, line of business diversification represents a second dimension of evolution. It has been more common to speak of “the country subsidiary” as if it were monolithic, yet it is clear that most MNCs ramp up their activities over time, rather than entering in all lines of business at once
Typical Pattern of Line of BusinessDiversificationCompetitiveadvantageversuslocalfirmsLOB 1LOB2LOB3LOB4TimeLiabilityofforeignness
Typical Pattern of Line of Business Diversification Time Competitive advantage versus local firms LOB 1 LOB 2 LOB 3 LOB 4 Liability of foreignness