Issue 1: Who should handle Labour Relations - Headquarter or the subsidiary in the concerned country The national dissimilarities in economics, political, and legal systems create diverse labour-...

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Extracted text: Issue 1: Who should handle Labour Relations - Headquarter or the subsidiary in the concerned country The national dissimilarities in economics, political, and legal systems create diverse labour- relations system across countries, MNCS HQs typically delegate the control over labour relations to their foreign subsidiaries. Having said that, the participation of the MNC headquarters in host-country labour relations is impacted by 4 key elements: 1. In case there is a high level of inter-subsidiary production integration, the labour relations function is centralised and is coordinated by the head quarter. 2. The nationality of ownership of the subsidiary has an influence on who should take care of employee relations. 3. Furthermore, subsidiary character has a bearing on who should deal with employee relations. 4. Finally, where a subsidiary is dependent more on its parent company for resources, you will see a greater corporate involvement in labour relations.