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International connectedness and local disconnectedness: MNE strategy, city-regions and disruption

As the world becomes more global, Multinational Enterprises (MNEs) often disregard local relationships due to the international connections for their business. However, this can lead to a populist backlash against MNEs, as this strategy contributes to the uneven development of local industries.

Ram Mudambi reasons that while the locals are right to be agitated, MNEs can still adjust their strategies to contribute to the renewal of local connectedness. Through active engagement with the local startups, a process he calls local spawning, MNEs and their host cities both win.