Abstract
Technology is, perhaps, the most desirable attribute of multinational enterprises (MNEs) to the less developed countries (LDCs) and constitutes their primary source of bargaining power. Similarly, the attractiveness of a market to the MNEs constitutes LDCs' principal source of negotiating strength in dealing with MNEs on such matters as the conditions for investment and technology transfer. What is unclear is how these independent variables are most successfully utilized. The aim of this paper is to identify and examine the bargaining power variables and their level of influence in technology transfer negotiations. The result shows that though technology is always a source of negotiating strength to MNEs, locational attractiveness may not always be a significant source of bargaining power to LDCs in all negotiations with multinational enterprises.
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