Alternatives to the Multinational Enterprise by Mark Casson

By Mark Casson

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

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A market is open if transactions with outside parties are permitted, and is closed if they are not. If an internal market is closed its optimal scale is likely to be very much larger than if it were open. When a market is closed it is necessary to match the scales of the supplying activity and the demanding activity through the internal market alone.

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.

A. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. a. ll/10/Rev. 2, Table 10. Note: Figures in brackets are estimated quantities. Total Date Country Patents, trademarks, etc Payment ($m. 12. 0 ~ "'I:: "' ~ ~ ~ So ~ ~ ;::: ...... ~ ...... e. 16 In view of this it cannot be said that the real cost of importing technology into LDCs is prohibitively high. 75% of the host country GNP. Indeed it will be one of the main arguments of this book that the major barrier to the transfer of technology to LDCs is not the cost to the host country, but the unwillingness of source-country firms to license or invest because of the difficulty of appropriating a reasonable share of the wealth created by the technology.

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