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

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 global the most function of the multinational firm has been the overseas diffusion of propriety expertise and managerial talents"

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Extra info for Alternatives to the Multinational Enterprise

Example text

The allocation can be either planned centrally, choosing the quantities transacted through a process of constrained optimisation, or decentralised through a two-stage procedure which determines quantity response to price and then evaluates an equilibrium set of prices. Centralisation incurs additional communication costs and imposes a heavy burden on the single information processor. On the other hand it avoids the iteration of trial prices and the repeated to-and-fro movement of information associated with it.

An efficient royally system necessarily has a payment related to output. To encourage profit-maximising plant managers to produce at the minimum of AC1 it is necessary to adjust their perception of marginal cost so that marginal cost is equal to the limit-price S0 at the output Q . It is thus necessary w impose a royalty on the marginal unit Q 1 equal to S0-S 1 • At the same time, to obtain the maximum total royalty payment it is necessary that on average the same royalty is paid on each intramarginal unit of output.

Cross-classification of types of royalty agreement by industry, Philippines, 1970 w N ('>) ~ "" "" t;;< ('>) ;::::- ..... , ..... ;:::: ('>) ~ V:l ~ ..... ('>) 24 Alternatives to the Multinational Enterprise improvements are essential to any efficient market in proprietary information, and that only restrictions on tied inputs can be condemned on efficiency grounds. It is quite possible for host countries to accept these restrictions and still benefit substantially from FDI; they will certainly benefit more than if the supply of technologies dries up because of a refusal to meet the minimal requirements of proprietors.

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Alternatives to the Multinational Enterprise by Mark Casson


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