ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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International Markets for Steel Plant and-Technology-An Industrial Organisation Approach

Technology An "Industrial Organisation' Approach Introduction THE 'late' industrialisation of Japan has been based on extensive learning from imported technology and plant (capital goods) in order to raise productivity and achieve international competitiveness. A great deal depends on whether the recipients or buyers (a) define exactly what component of the plant and technology package is to be imported; (b) research the potential suppliers and are able to short-list a lew who can best supply (heir needs and with whom they believe the best bargain can be struck; (c) prepare thoroughly for negotiations and bargaining (from the technical, legal and commercial angle); (d) contract for the 'core1 component (that component for which the market is highly oligopolistic, usually the more technologically complex part) with one of the short-listed firms and sub-contract the 'peripheral' component to cheaper foreign or local suppliers; and (e) invest in complementary resources (local R and D, design and engineering, pilot plants, experimental workshops and the shop floor) for the assimilation and adaptation of the imported plant and technology. The best example of this is that of the initial adoption of basic oxygen furnace steel-making in Japan in the

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