By Mark Casson
"in the postwar global the most function of the multinational company has been the foreign diffusion of propriety know-how and managerial abilities"
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Extra info for Alternatives to the Multinational Enterprise
1:3 ~ ;§"" ..... :! :! 1:::1 Indonesia Malaysia Thailand Burma Philippines Mexico Brazil Andean Common Market y' y' y' y' y' t ·- y' .... ~ 0 ·-"" ·-..... __ ·- ..... 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.
Other major recipients are West Germany, France, UK and Japan. 11 gives a breakdown of US receipts from proprietary information by country of origin. Payments of royalties and licence fees are contrasted with payments for other property rights, such as management fees and miscellaneous rentals. It can be seen that although on a global scale royalty payments are extremely high (and constitute a major credit in the US balance of payments), the proportion exacted from LDCs is less than 10 %, although LDC payments for other property rights are much higher and constitute a third of total US income from this source.
The simplest method of discrimination is to allow a patentee to fix prices; a profit-maximising patentee will fix them on the basis of the marginal benefit schedule, which means that no surplus at all accrues to consumers. the patent will accrue ultimately to the government, not the patentee, and so a suitable proportion ,of the surplus can, if desired, be redistributed to consumers through the tax system. 6 SALE OF EMBODIED INFORMATION TO FINAL USERS Although some information may be of intrinsic interest to the consumer, most information is channelled through an intermediate user, and consumed in.