ABSTRACT
We have already made it clear how and why the performance of STEs on the world market has been worsening over the years. However, while the international trade theories referred to in the preceding chapter assumed arm's-length trade, more elaborated forms of mutual involvement have also been taking place. Licensing and other deals, called ‘industrial co-operation’ in UN parlance, never gained much weight in East-West trade (some 5 per cent of total manufacturing exchange, i.e. some 2 per cent of total East-West trade: 1 see Bozyk and Guzek, 1976). Nonetheless since they were associated with the inflow of technology and capital to STEs — and later with increased imports — they became an important factor affecting the performance of STEs. Its impact is felt throughout these economies to the present, both domestically and in foreign trade.
