COUNTRY RISK AND NETWORK LINKAGES WITHIN MULTINATIONALS.

The article discusses a study that looks at the dynamics of networks and seeks to answer the question: within an existing network, how does the level of risk specific to an existing node affect linkages between that node and the rest of the network? The article states that the study seeks to conceptualize the multinational corporation (MNC) as a network of interdependent subsidiaries, and looks at the effects of country risk to which a subsidiary is exposed on the intensity of intra-firm trade between the subsidiary and the rest of the MNC's global network. The article states that the conclusions of the study offer interesting insights into how MNCs deal with country risk.