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By Mark Casson

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

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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.

Under both old and new technology, production is carried on by a large number of small plants. Initially the industry supply curve is S0 S0 ' and industry output is Z. 4(b) each plant produces an output Q0 at the minimum of its average cost curve (A C0 ) where the marginal cost curve (MCo) intersects it. With efficient use of the new technology the competitive industry supply curve shifts down to S 1S 1', and each plant produces a larger output Q 1 at the minimum of AC, where MC 1 intersects it.

Partial equilibrium analysis provides simple criteria for the efficient quantity traded in a given market. Suppose that initially the quantity traded is restricted to zero, and then gradually increased in a succession of small increments. Marginal benefit is defined as the maximum value the keenest demander is willing to sacrifice in order to acquire a further increment and marginal cost is the minimum value the most able supplier is willing to accept as compensation for it. The excess of marginal benefit over marginal cost measures the surplus created by the incremental transaction.

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