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Transfer of Technology and R&D to Developing Countries - Essay Example

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TThis essay discusses that transnational corporations (TNCs) are regarded as the business enterprises that are similar to multinational or global companies performing which perform their business activities in more than one country. TNCs are identical to multinational or global companies…
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Transfer of Technology and R&D to Developing Countries
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Transfer of Technology and R&D to Developing Countries

Download file to see previous pages... Increased globalization, as well as advancement of technologies, has been observed since last few years. These two factors ultimately facilitated the TNCs to perform their necessary business activities worldwide in an effective manner (United Nations, 1994). TNCs are typically related to making huge financial investments as well as the transfer of technologies in foreign countries. Moreover, they are also assigned with commencing new production processes in varied countries for generating more profit as well as attaining superior competitive position (Petkovic & Rakic, 2010). In this similar context, Foreign Portfolio Investment (FPI) is regarded as an important aspect that is generally made by the investors with the motive of generating profit. Moreover, FPI investors possess full ownership but no control over foreign firms. In contrast, FDI investors possess both full ownership as well as control over foreign firms (Itay & Razin, 2005).
This discussion will emphasize upon describing the forms of international operations of MNCs or TNCs, theories of international trade and investment. Moreover, different forms of technology transfer will also be portrayed in the discussion.
Firms are often engaged in indirect exporting with the motive of minimizing risks that evolves while with conducting their respective business activities, especially in foreign countries. In indirect exporting, goods are sold to an intermediary who sells those goods in overseas markets. These firms have minimum involvement in the international market (Delaney, 1998).
In licensing, a firm of one country allows another country’s firm to possess the right of utilizing intellectual property such as patent, technology as well as trademark among others (Cherunilam, 2007). ...Download file to see next pagesRead More
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