Market Rivalry, Government Policies and Multinational Enterprise in Developing Countries

Homi Katrak

Chapter 5 in Multinational Enterprises in Less Developed Countries, 1991, pp 92-110 from Palgrave Macmillan

Abstract: Abstract The governments of less developed countries (LDCs) often complain that the subsidiaries of foreign multinational enterprises (MNEs) employ capital-intensive, rather than labour-intensive, techniques of production. The reasons for this concern are that the capital-intensive techniques generate relatively little employment, entail more expenditure in terms of scarce foreign exchange and the products made with those techniques yield relatively little benefit (in a sense discussed below) to consumers.

Keywords: Market Rivalry; Lower Marginal Cost; Reaction Schedule; Potential Rival; Parent Country (search for similar items in EconPapers)
Date: 1991
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DOI: 10.1007/978-1-349-11699-7_5

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