Tying of supplies to subsidiaries by transnational enterprises

Other Names:
Restrictions on raw materials and components utilization

Transnational enterprises tend to require that their subsidiaries import from within the corporation's structure the raw materials and intermediate goods required rather than utilize similar domestically produced goods where these are available. Such restrictive practices distort international trade patterns, often to the disadvantage of the developing countries which are host to the transnational corporation subsidiaries. Restrictions have been particularly marked in the sectors of electrical goods and machinery and machine tools.

Related UN Sustainable Development Goals:
GOAL 12: Responsible Consumption and ProductionGOAL 17: Partnerships to achieve the Goal
Problem Type:
E: Emanations of other problems
Date of last update
04.10.2020 – 22:48 CEST