Why do multinationals divest overseas operations

By: Jonathan Kush

Multinational corporations divest overseas operations for a number of reasons. For example, over the years, a number of multinational corporations from the UK have divested their operations in the US. These have included Tesco and Sainsbury’s in food retailing. Other industries such as fashion retailing have also seen companies make a hasty and dramatic retreat from overseas markets they had previously expanded into, such as Marks and Spencer also in the USA. The reasons for divestment are many and variable.

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