Multinational corporations benefit from sharing knowledge between their different branches. A study looked at how knowledge flows between parent companies and newly acquired subsidiaries in Eastern Europe. They found that when a subsidiary is acquired to build new skills, it receives more knowledge from the parent company. On the other hand, subsidiaries with valuable knowledge are able to share more with the parent company. The location of the subsidiary also affects how much knowledge is transferred. This research shows that the direction of knowledge flow is important for multinational corporations.