International Organization of Production and Variation in Exports from Affiliates

There is no simple relationship between internationalization of firms' operations and expanding trade. The variation in exports from Swedish affiliates is here shown to be influenced by properties related to their degree of vertical and horizontal integration. Affiliates' propensity to export is positively affected by production in few countries, intermediate imports from the parent, plant size, income level of the host country and a location in the European Community, and is negatively affected by R&D intensity and the size of the host country market.