are less likely to internationalize in an election year, and when they do, they implement more flexible strategies than fully private companies," says Rodrigo DeMello, an associate professor of management at Bentley University.
"The role of the home government supporting its multinationals is well documented; however, multinationals from emerging countries face potential disruption of this support in election years," says Gama. State indirect ownership organizations are 20% less likely than private companies to expand abroad during election years. They are also almost 40% more likely to establish foreign service subsidiaries over manufacturing plants and 10% more likely to establish a wholly owned subsidiary as opposed to a jointly owned one.