Beware These Pitfalls When Marketing U.S. Technologies in Developing Countries

Developing countries offer US firms a market with few competing products and a willingness to pay heavily for technologies to solve their problems. Both commercial and moral benefits are available to firms that are realistic, zealous, and willing to spend the necessary time and money in the Third World. US firms must understand the needs of less developed countries (LDC), particularly their needs for what are considered dated technologies. US firms should not expect quick sales and profits because marketing in the Third World is difficult and new products are adopted slowly. Often, donors of technology have aims and expectations that diverge widely from those of recipients. This situation creates problems and leads to aborted projects. Government requirements and delays can greatly increase the time and expense involved in dealing with LDCs, and poor communication facilities multiply the difficulties. Political instability is not as great a threat to technology transfer as to heavier investments, but donors who are concerned should buy insurance to protect their investment rather than charge recipients more.