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              <p>In an unstable economic environment, multinational companies (MNCs) need to better manage their relationships with foreign subsidiaries. MNCs need to adapt to local market specificities when they create and manage foreign subsidiaries. Several concepts have been defined in the specialized literature to describe these characteristics: country risk, cultural distance, institutions, and so on. This chapter focuses on the multidimensional concept of distance in order to highlight the main areas of differences between headquarters and subsidiaries as a result of local market specificities.</p>
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