1. General equilibrium considerations would suggest that primary contribution categories
(1), (2), (3), and (4) will have export-import implications by allowing host country
resources to be used more efficiently. To the extent that “market penetration” is a barrier
to entry to a particular industry, or an intangible asset of an MNC, category (5) merits separate consideration.
2. Rather than explicit “coaching,” the foreign investor may provide a “positive productivity shock” in the form of a required technical audit or ISO 9000 certification in order for
an indigenous firm to qualify as a supplier.
3. See footnote 1 regarding general equilibrium considerations.