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ISBN- 81-7041-745-7
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INTERNATIONAL TRANSFER OF TECHNOLOGY
C.S. NAGPAL,
A.C. MITTAL
Technology, with its ability to improve our lives has become increasingly important throughout the world. This is true for the developed economics as well as those nations which are just beginning to developed a technological base.
There are many ways to transfer technology to developing countries. One way is through direct investment by a multinational corporation in a wholly owned or majority owned subsidiary. Another is through a joint venture where the multinational has a minority interest. Other ways include the use of licenses and patents, turn-key operations, management contacts, equipment suppliers, and consultative arrangements that may be done independently or in combination with some of the other modes of transfer. The essence of all these methods however, is that the technology moves from a private entity in the developed country to the recipient, public or private, in the developing country. While the developing countries may resent this dependence, the harsh truth is that developing countries do not need technology, and there exist few alternative sources outside the transnational corporations where they may obtain it.
The innovation of new products and the transfer of technology between countries are desirable from a global perspective. The innovation of new products increase the range of consumer choice and transfer of technology increases the efficiency of world production; both innovation and technology transfer affect the distribution of income between the two countries.

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