Review 18 -- No Title

This book offers a concise theoretical treatment of the questions concerning why multinational corporations (MNC) and labor managed firms (LMF) within Yugoslavia enter into joint venture agreements. The primary question concerns the incentives for such joint ventures and the relative profitability for both partners. The multination corporation wishes to take advantage of a skilled and relatively inexpensive source of labor and the possibility of penetrating markets which were previously closed to them, especially those of the nonaligned bloc. The labor managed firm on the other hand desires advanced western technology and management skills to augment its existing structure. However, in Yugoslavia no foreign firm may have equity ownership in an LMF.