Tying of supplies to subsidiaries by transnational enterprises

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.