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TRANSACTIONS COST ECONOMICS AND THE MULTINATIONAL ENTERPRISE: An Assessment

In: The Transfer And Licensing Of Know-How And Intellectual Property Understanding the Multinational Enterprise in the Modern World

Listed author(s):
  • David J. TEECE

    (University of California, Berkeley, CA 94720, USA)

AbstractThis paper applies transactions cost principles to the multinational enterprise in order to ascertain its distinctive properties as a mode of economic organization. The analysis helps identify just when and where contractual alternatives to the multinational firm are likely to be viable. This turns out to depend upon the nature of the technology, the regime of appropriability within which the firm operates, and the characteristics of the markets in question. Transactions cost analysis is also extended to the multinational enterprise-host country relationship. Implications for management and public policy are derived.

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File URL: http://www.worldscientific.com/doi/pdf/10.1142/9789812833181_0020
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File URL: http://www.worldscientific.com/doi/abs/10.1142/9789812833181_0020
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This chapter was published in:
  • David J Teece, 2008. "The Transfer and Licensing of Know-How and Intellectual Property:Understanding the Multinational Enterprise in the Modern World," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 6146, November.
  • This item is provided by World Scientific Publishing Co. Pte. Ltd. in its series World Scientific Book Chapters with number 9789812833181_0020.
    Handle: RePEc:wsi:wschap:9789812833181_0020
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