them from their parent company. This behaviour can be detected not only In markets dominated by foreign subsidiaries (as the products 2 to 8), but also where local firms (not acquiring practice), have an Important share of sales <numbers g and 13 In practice, In a sector where foreign and national firms coexist, It Is the foreign ones that are most llke{y to take out licences, while the national ones tend not to do so (or to do It to a lesser extent). This happens with products like paint, surface coverings• water-proofing, galvanized material, polyester and glass fibre sheeting where local firms have most of the market. The subsidiaries. In spite of only accountlng_for 20-301 of total production, obtain I lcences tor all their sales# nearly always from their parent company. Here, It Is only foreign f!rms which buy technology from abroad. In other words, a close correlation exists between licensing and foreign capital Involvement. The former three points permit the development of a first group of preliminary conclusions explaining ~he segments of the ~arkets where the substitutive effect have a great validity: (a) Whatever the level of local participation fn the market, almost In every sector, firms acting with or without licences coexist, whilst the cases of total exclusion are rare. The presence of I lcence argrements. do not necessarily substitute the use (or development) of local capabilities. t3. For simplicity's sake, we have decided not to distinguish between firms according to the level of Involvement of foreign capital. It Is true that firms whose sphere of operations Is completely controlled by a foreign firm cannot be considered alongside firms with a smal I degree of foreign Involvement. But from our point of view, the way In which we have worked does not Invalidate the partial conclusions 
**Analysis**
The text discusses the relationship between foreign capital involvement and licensing in different industries, highlighting the correlation between the two. It also touches on the coexistence of firms with and without licenses in various sectors. The text's focus is on the economic dynamics of firms and their interactions, rather than on specific sectors or industries. This suggests that the category should be broad enough to encompass economic activities in general.

**Category**
Industry, International trade