An important motive of internationalization of multinational corporation(MNC) is to acquire local knowledge, and to transfer know-how from its foreign subsidiaries to the parent in order to enhance core competence. An economic explanation about know-how feedback is demonstrated, the factors of subsidiaries feedback decision are analyzed, the benefit effects of the parent and subsidiary on feedback and non-feedback model are elaborated. In conclusion, MNC should locate in the country abundant with advanced knowledge and pay attention to internal and external knowledge transfer mechanism in order to achieve better know-how feedback performance.
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