Download e-book for kindle: Alternatives to the Multinational Enterprise by Mark Casson

By Mark Casson

ISBN-10: 1349046450

ISBN-13: 9781349046454

ISBN-10: 1349046477

ISBN-13: 9781349046478

"in the postwar international the most position of the multinational company has been the foreign diffusion of propriety know-how and managerial talents"

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2/ 104/Rev. 1, Tables 2-4. Note: The total number of export restrictions and other restrictions can exceed the total number of agreements with restrictions because a given agreement can contain an export restriction as well as other types of restriction. A given agreement can also contain one or more types of export restriction. It is certainly true that in the past the lack of bargaining skills in LDCs has led them to accept very unfavourable terms from MNEs. t 8 However it can be argued that many of the restrictive clauses in technology contracts are a legitimate defence of the proprietor's interests, so much so that if host countries outlaw such practices proprietors may prefer to abstain from FDI or licensing rather than meet the host country's terms.

If a transactor is asked about this price there may be either no response or an untruthful response. The analysis of the 'free rider' problem 3 indicates that a transactor who believes that his response will not ultimately influence his opportunity to trade will deliberately understate his reservation demand price and overstate his reservation supply price. Secondly, the enforcement of price discrimination requires restrictions on resale. Legal restrictions are usually costly to police. Other restrictions, such as differentiation of the product to a degree which makes it non-transferable between users, are usually difficult to enforce without the collaboration of producers of complementary goods.

The Concept of Efficiency 33 The efficiency of equilibrium prices no longer applies when production takes place under increasing returns to scale. An activity exhibits increasing returns to scale when an equiproportional increase in all inputs leads to a larger proportional increase in all outputs. 4). Allocation of resources under increasing returns to scale is most easily studied using the partial equilibrium analysis described in the following section. 3 INCREASING RETURNS TO SCALE AND PRICE DISCRIMINATION 2 Partial equilibrium analysis studies the nature of equilibrium in one market when prices in all other markets remain fixed at their equilibrium values.

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Alternatives to the Multinational Enterprise by Mark Casson


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