76 SOCIAL SCIENTIST both capital owners can achieve gains (otherwise the foreign market would be lost); c) but if the already existing market is protected not against a third country, but against another company of the capital exporting country, then the impact on the company and the impact on the country may considerably differ from each other. The income of the factors of production is increased by a relatively larger amount than the product prices. If the country exports as well as imports capital and goods, the two terms of exchange move in contrary directions. Thus, the net result of the international income division depends on the manner in which the factor intensity of capital and goods evolve. According to the growth doctrine the tendency is for technical progress in the export sectors to lead to a deterioration in the terms of exchange of the given country. However, this conclusion will be true only if referred to the existing export products. As a matter of fact, technical progress in the export sector is accompanied by the introduction of new products. The transnational monopolies do not want to stop international trade through their capital exports, but they want to influence it in accordance with their own reproduction process and profit interests. They achieve this by transforming an important part of the international exchange of commodities into an intra-company activity. 1 V Tjagunenko, Neokolonialistische Arbeitsteilung Probleme des Friedens und des So^ialis-mus, Berlin;, 1972. 2 Survey of Current Business, August 1977, p 33. 3 "UK Industry Abroad*', Financial Times, London, 1976. 4 H Kragenau, "Deutsche Direktinvestitionen in den sicbziger Jahren", Wirlschafts-dienst. No 7, 1977, p 362. 5 Benedeczki Janos, A Nemet Szovetsegi Koztarsasag a vilaggazdasagban {Federal Republik ofGermany, inthe World Economy), Korunk vilaggazdasaga, II kotet {World Economy o f our Age, II Vol) edJozsefNyilas, KJK, Bp, 1976, p 400, and Der Spiegel,\975. 6 Far Eastern Economic Review, 18 March, 1974. 7 Tamas Szentcs, Elmaradottsag es feilettseg dialektikaja a takes vilaggazjdamgban (Dialectics of Under development and Development in the Capitalist World Economy), Budapest, Kossuth Konyvkiado, 1976, p 320. The author examines the change of these functions in detail. a On the basis of, MNCs in World Development, UN, 1973. 9 Development Cooperation Review, OECD, Paris, 1976, p 67. 10 Statistical Yearbook 1976, UN, 1977, p 17. 11 A EIjanov, Rawvajusieszja sztranu: problems ekonomichesko^o rosfa i runok (Developing Countries: Problems of Economic Growth and Market), Moscow, 1976, pp 129-130. 12 C Stoneman, "Foreign Capital and Economic Growth,*' World Development, January, 1975. 13 C Voivodas, "Export, Foreign Capital Inflow and Economic Growth", Journal of International Economics, November, 1973. // 14 Journal of Development Planning, No 8, 1975, p 17. n Survey of Current Business, August, 1977, p 45.