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By Mark Casson

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

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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.

The analysis in this book is concerned mainly with efficiency. This is not because equity is unimportant, but because both equity and efficiency are sufficiently important to warrant separate treatment, and it is our belief that previous discussion has paid too little regard to considerations of efficiency. 1 INTRODUCTION This chapter begins by summarising economists' insights into the nature of efficient resource allocation. 2 introduces the concept of Pareto-efficiency and describes the role of prices in the coordination of economic activities.

13. Percentages of contracts containing restrictive export clauses c. 1970 Country Percentage Peru Mexico Chile Bolivia Colombia Ecuador India Philippines Argentina Israel 99 97 93 83 79 75 43 32 28 6 Source: UNCTAD, Major Issues arising from the Transfer of Technology to Developing Countries, New York: United Nations, TD/B/AC. 11/10/Rev. 2, Table 7. review bodies (or similar agencies) in India, the Philippines and Mexico. In India most export restrictions relate to specific foreign markets whereas in the Philippines and Mexico a global ban on exports is the most common.

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