ABSTRACT
Many Western corporations have established special departments to handle business with Socialist countries. Economic collaboration with one Socialist country may open avenues to markets in other Socialist countries. The Socialist countries have been well aware of the ‘technological gap’ separating them from the most advanced capitalist nations. Multinational corporations are well aware of the technological, commercial and financial attractions they hold for the Socialist countries. Production cooperation and joint ventures with the Socialist partners provide the route to this extra market. Practically all Western countries have concluded inter-governmental agreements on economic, industrial, scientific and technical co-operation with at least some Socialist countries. These agreements usually cover 5-10 years and provide a general basis for collaboration in specific directions. The Socialist leaders decided to turn to productivity increases as the source of growth of national income in their desperate effort to sustain rapid economic development.
