After a joint venture agreement with a high-income country’s firm, an export-oriented but technologically backward firm in a low-income country may earn higher profit, but may not be able to improve its export market performance, unless the world market size is large. In a two-firm-two-country...

ILO pub. Working paper analysing the increasing role of developing countries in multinational enterprise operations and the effects of their choice of technology on employment creation in developing countries - describes small- scale and labour intensive technology, small size of enterprise,...