T

—
re

     
   

Canada 8.3

Oceania 8.0
Europe 7.8
(EEC) (6.4)
(other) (8.7)

*Profitability = Earnings after foreign but before U.S. taxes
as per cent of total direct foreign investment at end 1967.

Source: B. Hawtylshyn, ‘The Internationalisation of Firm', Journal of World Trade
Law, Vol.5, No.1 (1771), p. 77.

TABLE 4: INCOME FROM THE ‘THIRD WORLD’ (1950 -
1965) (BILLIONS OF U.S. DOLLARS)

America
8.1 6.8 3.8
5.5 5.9 11.3

Net + 26 + 0.9 = 3.7 =81

     
  

All other

areas
Flow of direct Investment

from U.S.
Income on this Capital
transferred to U.S.

Source: H:Magdoff, The Age of Imperialism (New York Monthly Review Press,

1969), p. 198.

It is clear that the multinational corporations can ill-afford to lose
the running of their economic writ in these areas.

During the era of formal colonialism, the metropolitan com-
panies had the fullest support of their respective states and were
free to exploit the resources of the ‘third’ through the typical form
of absolute capitalist private ownership. But even during this
period where local private capital was relatively strong foreign
capital quickly entered into partnership with it. Such examples are
to be found in a number of Latin American and Asian countries,
especially India. Thus, for instance, the Management Agency con-
tracts foreign and local private capital developed very rapidly in
India in the 1930s.!2 But as the wave of nationalisms began to
rise, and the formal colonialism began to withdrew the form
through which the resources of the ‘third world’ were to be ex-
ploited had also to be changed. Furthermore, the newer forms had
become necessary also because of important changes in the

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