The greater the resource complementarity between foreign and local parents, the higher the new value added owing to superior integration of complementary resources pooled by different parents.

Question

Quizplus · Accepted Answer

The statement is true. When foreign and local parents have complementary resources, they can integrate them effectively to create new value added. This is because the pooled resources are more diverse and can create synergies that would not be possible if the parents had similar resources.

The Greater the Resource Complementarity Between Foreign and Local Parents