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By Tagi Sagafi-Nejad

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Nonetheless, where only local markets are served, the T N C with a less than 100 percent equity stake might not have the same incentive to develop this market, relative to others in its network where conditions are more profitable. Where the host country is in a weak bargaining position, the transition from a fully owned affiliate to a joint venture may make little difference to the amount of control exerted by the investing company. Since the profits have to be shared with the local partner, the foreign partner may feel reluctant to relinquish control that might 18 INTERNATIONAL TECHNOLOGY TRANSFER enable him to recoup the lost profits by other means.

N . Centre on T N C s , Dunning and Pearce, 1977. (7) For a summary of the current situation, see U . N . , 1978. (8) It must be admitted that many other considerations affect the economic viability of downstream operations, not least the lack of available marketing opportunities and technological and social infrastructure. The change in this situation is most strikingly shown in the oil-producing countries. , from Japan and some of the developing countries. , Ozawa (1975), Wells (1977). REFERENCES Alchian, Α .

Plasschaert, S. 1979. Transfer pricing and multinational corporations. Farnborough: Saxon House. Sunkel, O. 1972. ' Foreign Affairs 50. Svedberg, P. 1978. The Portfolio-direct composition of private foreign investment in 1914 revisited. Economic Journal 88, no. 352 (December): 763-77. Tomlinson, J . W . C 1970. The joint venture process in international business: India and Pakistan. Cambridge: MIT Press. United Nations. 1978. Transnational corporations in world development: A reexamination, Sales N o .

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