New PDF release: Alternatives to the Multinational Enterprise

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By Mark Casson

"in the postwar international the most position of the multinational firm has been the overseas diffusion of propriety know-how and managerial abilities"

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__ ·- ..... t .... :! <:) ::! , ·- ·-"' '-' ..... :! ~bo .... :! :! :! "' ~ ~:::~·- y' y' y' y' y' y' ..... ;:. ;: y' y' Source: R. D. Robinson, National Control of Foreign Business Entry: A Survey of Fifteen Countries, New York, 1976. 9 EQUITY AND EFFICIENCY Although host countries perceive many problems in their relations with MNEs this does not imply that an international economic order based on the transfer of technology by MNEs should be rejected. It must first be demonstrated that a preferable alternative regime exists.

Certain types of charter or licence. In this event utilisation of an external market is out of the question and the only way to widen exploitation of the right is through internalisation. 5 COSTS OF INTERVENTION Government intervention in markets is often based on price, either directly as with statutory price controls, or indirectly as when tariffs are levied ad valorem. In each case there is a potential The Rationale of the Multinational Enterprise 51 gain to the private sector from dichotomising real and nominal prices, the real prices being used to guide resource allocation, the nominal prices to present a facade of compliance with price control or to minimise tariff liabilities.

Whichard and J. N. Freidlin, 'US direct investment abroad in 1976,' Survey of Current Business, 57, No. 8 (August 1977), Table 11. Note: Royalties and fees consist of payments for the sale or use of intangible property such as patents, processes, trademarks and copyrights; other income consists of management fees, service charges, film and television tape rentals, and rentals for tangible property. and licence fees. By far the largest recipient of royalties and fees is the US. Other major recipients are West Germany, France, UK and Japan.

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