International technology transfer: study of selected problems encountered by multinational businesses in lesser-developed countries

Thesis/Dissertation · Thu Jan 01 04:00:00 EST 1987

OSTI ID:6169318

Maddalena, J B

This project describes some of the problems encountered in the transfer of technology to Lesser Developed Countries (LDC) by Multinational Corporations. (MNC) In this study, the concept of technology is expanded to include industrial processes as well as the marketing of the goods containing the technical knowledge. The development and use of this technology is created under the values and standards existing in the MNC's country. However, when it is transferred to Third World Nations, the corporation frequently encounters cultural situations that are contrary to its domestic situation. In the Nestle case, baby formula was marketed in the Third World under assumptions that were valid in the Western World but which had tragic consequencesin the LDCs. The assumption of a clean water supply was taken for granted in the advanced nations. In the LDCs, however, impure water supplies were a fact of life. This and other circumstances led to misuse of the formula. The Union Carbide case involved the transfer of an industrial process for the manufacture of pesticides. These products were prohibited in the MNC's country but the lax regulations in India permitted the corporation to produce the toxic materials using less-stringent control. Many thousands of Indians were killed and injured when a deadly gas escaped from the plant. In both situations, the MNC failed to consider the local cultural conditions in its strategic planning.

• Research Organization: Fairleigh Dickinson Univ., Teaneck, NJ (USA). Dept. of Physics
• OSTI ID: 6169318
• Country of Publication: United States
• Language: English

Related Subjects

29 ENERGY PLANNING, POLICY, AND ECONOMY
290300 -- Energy Planning & Policy-- Environment
Health
& Safety
290500* -- Energy Planning & Policy-- Research
Development
Demonstration
& Commercialization
ASIA
DEVELOPING COUNTRIES
ECONOMIC IMPACT
INDIA
LEGAL ASPECTS
MULTINATIONAL ENTERPRISES
POLLUTION REGULATIONS
REGULATIONS
TECHNOLOGY IMPACTS
TECHNOLOGY TRANSFER