Model examination for selecting subsidiaries by U.S. textile multinational corporations

Abstract

U.S. multinational companies are the most important source of foreign direct investment in the textile global market. In this study, the market expansion strategies of these multinational companies are examined in detail. I have applied two models for these companies to select their subsidiaries in different countries. The paradigm is formed by using Porter’s diamond model and Austin’s Environmental Analysis Framework. The models are applied to evaluate the environmental factors of Canada, China, Germany, and Mexico. According to the results, Porter’s model is applicable for developed countries, while Austin’s framework is more suitable for developing countries. For the U.S. textile industry, this study will be an important tool for location decisions.