ABSTRACT
This chapter aims to shed new light on whether the behaviour of translational corporations (TNC)-affiliates is in any way different to that of their local counterparts in terms of how they adapt their business models in India. It presents a general discussion on adaptation and linkages and their implications on industrial development in host countries. The chapter considers the empirical evidence, and outlines the research hypotheses. Several factors may cause the TNC-affiliate to employ greater capital intensity than its local counterparts. Originating in countries where capital is relatively abundant, the TNC-affiliate may have better access to competitive rates of capital and as a result may be in a better position to afford large capital expenditures. It may also be easier for the TNC to transfer, in unadapted form, the same capital intensive techniques that are proven abroad.
