ABSTRACT
The bulk of technological changes in Western economies is carried out by large industrial entities, predominantly of an international nature. There are three major theories explaining the internalization of international technology transfer: one associated with the names of O. Williamson, P. Buckley and M. Casson, the other elaborated by S. Magee and the third put forward by R, Findlay. Technology transactions represent a typical case for internalization which may be explained by "information impactedness" high uncertainty of the transactions, its low recurrency and a high share of specialized human and capital investments. CMEA countries act as both home and host countries for foreign direct investments. Investments made by CMEA countries have a relatively long history; however, their dynamic expansion only took place in the 1970s. This growth can be explained basically by the attempts undertaken by several of the CMEA countries to build-up their exports and to rationalize their production structures.
