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Transaction costs of early modern multinational enterprise: measuring the transatlantic information lag of the British Royal African Company and its successor, 1680–1818

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  • Klas Rönnbäck

Abstract

There is extensive previous research on the early modern chartered multinational corporations, their development and how they dealt with the various challenges they faced. This article attempts to contribute to this field of research by estimating quantitatively the information lag in early modern multinational enterprise, studying the case of the British Royal African Company and its successor the Company of Merchants Trading to Africa. The results show that the transatlantic information lag decreased somewhat during the second half of the eighteenth century. The decrease was however quite modest, and far less striking than has been claimed in some previous research. During the period, this information lag therefore still posed a major constraint on the development of multinational enterprise.

Suggested Citation

  • Klas Rönnbäck, 2016. "Transaction costs of early modern multinational enterprise: measuring the transatlantic information lag of the British Royal African Company and its successor, 1680–1818," Business History, Taylor & Francis Journals, vol. 58(8), pages 1147-1163, November.
    • Handle: RePEc:taf:bushst:v:58:y:2016:i:8:p:1147-1163
    DOI: 10.1080/00076791.2016.1156087
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    1. Kupperman, Karen Ordahl, 2012. "The Atlantic in World History," OUP Catalogue, Oxford University Press, number 9780195338096.
    2. Steele, Ian K., 1986. "The English Atlantic, 1675-1740: An Exploration of Communication and Community," OUP Catalogue, Oxford University Press, number 9780195039689.
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