MULTINATIONAL CORPORATION: CHARACTERISTICS, ENTRY MODE AND TECHNOLOGY TRANSFER IN DEVELOPING COUNTRIES

Hamisu Ibrahim

Department of Business Administration

Kwararafa University, Wukari, Taraba State

E-mail: hameezabc@yahoo.com

ABSTRACT

Technology transfer perhaps is the most important benefit that could be brought by multinational corporations to host economies,   but they are not guaranteed, automatic, or free. The geographical spread of Multinational Corporation especially in developing countries creates a link between foreign direct investment and technology transfer in those countries. But the findings indicates that technology transfer to countries by multinational is mostly to labour-intensive industries with low technology and further shows that the major channel of technology diffusion to local industries in developing nations is through “learning by watching” or by spill over effects. Thus based on the findings the following recommendations were made: That developing nations should strengthen their industrial absorptive capability in order to diffuse technology to local industries and also they should strengthen their intellectual property right in order to attract foreign direct investment