The economic climate after the second world war has changed phenomenally, MNC’s today are looking for resources were in they could achieve economies of scale by exploiting resources, in return providing the host country with technology which leverages the production process by superiority in technology which they posses in order to maximize their profit. The mutual consent of both the parties here could be related to the game theory in which to sustain a share in market both parties mutually compromise. There are three broad categories of FDI transfer, namely 1) Direct transfer by the mode of licensing which is not preferred by the companies as most of the companies would not prefer in parting their technology work to others, 2) Import and export of intermediate goods and capital products as explained adversely by Tybout et al. (1997), 3) Indirect FDI transfer in the for...
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