The international business implications of transferring computer technology from the United States to South Korea
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The transfer of technology is inevitable. Developing countries must achieve the status of the industrialized countries if progress and growth in the computer industry is desired. If the U.S. corporation is not the provider of the technological know-how, the developing countries will obtain the information elsewhere. By providing the technological know-how, U.S. multinationals can reap the short-term benefits from lower production costs and increased market share. Even with the threat of creating future competitors, the transfer of technology should not be discharded. As Gee (1975∶623) says, “(the) loss of technological monopoly by one country means there is more know-how to be gained from another country”. As other countries reach the level of expertise seen in the United States, the U.S. multinational can tap those markets in an effort to stimulate innovation in this country. The threat of competition from Korea in high volume computer products can be approached in a positive manner as feedback mechanism to help upgrade U.S. capabilities, stimulating innovation and eventually technological competitiveness.
KeywordsUnited States Production Cost Market Share Industrialize Country Industrial Organization
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