Promotion of transnational strategies is inevitable for multinational companies, but a fundamental challenge is the resolution of the dilemma between cost reduction and local adaptation (responsiveness). This exploratory case study investigates this issue and motivates that a modular strategy...

We exploit exogenous variation in tax notches created by controlled foreign corporation (CFC) rules to better understand the profit-shifting behavior of multinational enterprises (MNEs) and its consequences for real activity. Using new data on CFC rules and information on direct parent-affiliate...