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What are the major factors affecting the autonomy of foreign subsidiaries, and the ways that head offices control them, in international firms? The autonomy of foreign subsidiaries in large internationalised organizations differs among different organizations. To be specific, the major factors affecting the autonomy of foreign subsidiaries are forces for global integration, forces for local responsiveness, and administrative heritage of the company. Forces for global integration reflect the need for global efficiency. The major incentive …

…on capabilities in its existing , configuration, Philip began to concentrate activities in the countries that had the least cost for each activity's primary input factor. It expand its small operations in Singapore and Taiwan, where labor costs were low, by transferring labor intensive production items to those plants; and it exploited the fact that it had R&D in the U.K. , which had a rich technology base and relatively low-cost scientists and technicians.