Problem
Tying of supplies to subsidiaries by transnational enterprises
Other Names:
Restrictions on raw materials and components utilization Nature:
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.
Broader Problems:
Restrictive business practices of transnational corporations Related Problems:
Grant-back provisionsRestrictions on use of personnelRestrictions on technology adaptationsRestrictive cross-licensing agreementsRestrictions on technology research and developmentRestrictive business practices relating to publicityRestrictive business practices limiting challenges to validityExclusive sales and representation agreements in transfer of technologyImposition of payment obligations after expiration of industrial property rights Subject(s):
Commerce → MultinationalsCommerce → Purchasing, supplying
Economics → Resource utilization
Fundamental Sciences → Material
Industry → Metal products
Societal Problems → Restrictions
Related UN Sustainable Development Goals:
Problem Type:
E: Emanations of other problems Date of last update
04.10.2020 – 22:48 CEST