earning43. The often complicated and confidential nature of truata facilitates the poeition of thoee corporations that seek to keep open the option of ra-entaring the South African market. United State8 corporations that beve utilieed trust arranaementa include Exxon. International Euainesa Machinea, Jobneon Controls and-the Ford Motor Company. The Bwediah engineering group, Alfa Laval, announced in 1987 that it wae transferring ownerohip of ite South African subsidiary to a trust located outside South Africa. General . Motors (United States> aiao CWUWPU UlsL..s,,.w-..m ----'--a -11 -.*--C--C ifi P managemanE buy-out a,,d A/451552 English Page 12 an employee trust when it decided to leave South Africa in 1986. Truate are established in conjunction with management buy-out arrangemento, and the te.lps of the trust giva the parent corporation an option to buy back the company. 26. Dieiaveatmento by transaational companies do not neceesarily meao an end to buaineoo tie8 with Bouth Africa. The companies find new wayo of doing buainsrs there which may even be more profitable. Non-equity link0 purcued by I?&% allow them to do buaineos more profitably than before in South Africa through liceacing agreemanta and contracts with local compaai44 without the political implication of direct investment. Tbie method is euphemiatfcally known ae tha “Japanese model”, &ice sevaral Weatem nations which are dioinveoting in South Africa are following a model that has been well tested by Japan. Japanese economic interests have been repreoented by their companies having eales and representative offices in South Africa ao well ae indirect ties such a6 leasing and dietri’Yution agreemonto. For example, Japanese automobile companies like Toyota, Mazda and Nioaan franchise their production to South African manufacturers, who uee Japanaee-supplied parts and amnufacturing technology to build vehicle@. Computera, chemfcalo and electronico have become their new fields of intereet in South Africa. 27. Licensing agreements have an additional advantage over other mode@ of 
**Analysis**
The text discusses the strategies used by corporations to maintain a presence in the South African market while avoiding direct investment, which suggests a focus on economic development and international trade. The text also touches on the concept of licensing agreements and their benefits, which is relevant to the industry and international trade categories.

**Category**
Industry, International Trade