Abstract
In addition to the difficulties inherent in internationalization, emerging market MNEs face the disadvantage of their low country-status when expanding abroad. This article integrates the country-of-origin effects to the foreign expansion decisions and paths of MNEs. It is stated that the status of the home country moderates the transferability of firm status during international expansion. A framework for examining the transferability of firm status from one context to another is developed. In addition, the chances of internationalization and the markets chosen by low vs. high status firms in emerging markets are discussed. Several propositions are provided for future empirical research.
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