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Transforming Economies, Technology Transfer and Multinational Corporations Strategies

Author

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  • Xavier Richet

    (Universite de la Sorbonne Nouvelle, Paris, France)

Abstract

Foreign direct investment inflows in European transition economies, although limited in volume, plays a strategic role in restructuring and developing new businesses, in integrating these economies to the world economy, in bringing in technology, know-how and management skill. Entry on these new markets either through acquisition and merger, either through greenfields depends of different barriers, asset specificities, market regulations. In spite of important entry and transaction costs, foreign investors favour direct investment with full control of local assets allowing them to attain more easily their different objectives: market share, cost reduction, integration of local units in the global or regional strategy of the company.

Suggested Citation

  • Xavier Richet, 2004. "Transforming Economies, Technology Transfer and Multinational Corporations Strategies," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 7(1), pages 1-21, May.
  • Handle: RePEc:zag:zirebs:v:7:y:2004:i:1:p:1-21
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    Cited by:

    1. Srdjan Redzepagic & Malisa Djukic, 2012. "Macroeconomic Aspects and Perspectives of Serbia within the Process of Enlargement of the Uropean Union," Book Chapters, Institute of Economic Sciences.

    More about this item

    Keywords

    technology transfer; institutional change; FDI;

    JEL classification:

    • F2 - International Economics - - International Factor Movements and International Business
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • P5 - Economic Systems - - Comparative Economic Systems

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