We know that expanding to new countries means increased total sales for a MNC. L Kamran Bilir, Davin Chor and Kalina Manova reveal that when the host economy that is doing well, it is observed that the local sales fall and sales to the parent country and third parties rise. This is due to increased local competition or relaxed borrowing constraints. However, the paper still leaves us wondering about the fate of these corporations in struggling economies. 

Title: Host country fnancial development and multinational activity

Source: The National Bureau of Economic Research