Acta Oeconomica 20. (1978)

1978 / 4. szám - Gordos Á.: Economic Ventures in Socialist Countries with Western Participation

408 Á. GORDOS: ECONOMIC VENTURES WITH WESTERN PARTICIPATION Aims of capital exporters and importers 4 Exporters of operating capital are usually multinational enterprises of capital strength which can satisfy expectations of socialist countries towards the import of technology. These enterprises subordinate their entire activity to their market strategy which includes also a more extensive control of markets while profit maximization is not regarded as a primary goal. It follows that market-expansion may be regarded as the primary goal of capital exporters cooperating with socialist countries, which indirectly brings about the expansion of production, a better return on research costs, further development of the division of labour, that is, a more favourable rate of profit. Over and beyond this also such factors arise as cheap labour, tariff reductions and tax exemptions, and smaller political and commercial risk, expectable in non-socialist countries. From the viewpoint of socialist partners the function of capital relationship is very complex, showing also considerable differences beside certain identical features. The endeavour of the socialist party is to involve new resources for the increase of the growth rate of the economy, for technological development based on imports of efficient technology, to increase receipts in convertible currency, to rapidly adapt advanced thechniques, to acquire up-to-date work organization and management methods. In the mutual relations of capitalist countries joint enterprises are one of the most important channels of integration and have an outstanding role in the exchange of intellectual products and the transfer of technology. Naturally, the integration process has some political preconditions, too, whose mutual lack results in that the integration of enterprises of socialist, among them first of all of CMEA-countries with those of capitalist countries cannot reach the extent experienced in the capitalist world. This does not exclude that in certain fields, if justified a joint venture of determinant importance should be established which then favourably influences its economic environment. Particular features of regulation and experiences in Yugoslavia, Romania and Poland Investments of foreign, including Western enterprises are allowed at present by the legislations of three socialist countries beside Hungary. Yugoslavia issued a relevant decree in 1967, which was modified several times, recently in 1976. Political preconditions in Yugoslavia, being no member-country of the CMEA, considerably differ from those in other socialist countries. (Let us only indicate that Yugoslavia participates on a contractual basis in the work of some committees of both the CMEA and the OECD). At the same time, owing to the Yugoslav economic reform, general inner environmental conditions were favourable for foreign capital invest­ments. In Yugoslavia foreigners may invest in already existing or eventually newly developing economic organizations. Their share in the capital may be 49 per cent at most and must be hundred thousand dollars at least. The banking sector, insurance activity,

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