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Market Rivalry, Government Policies and Multinational Enterprise in Developing Countries

In: Multinational Enterprises in Less Developed Countries

Author

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  • Homi Katrak

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.

Suggested Citation

  • Homi Katrak, 1991. "Market Rivalry, Government Policies and Multinational Enterprise in Developing Countries," Palgrave Macmillan Books, in: Peter J. Buckley & Jeremy Clegg (ed.), Multinational Enterprises in Less Developed Countries, chapter 5, pages 92-110, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-11699-7_5
    DOI: 10.1007/978-1-349-11699-7_5
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    Cited by:

    1. Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Policies to Encourage Inflows of Technology through Foreign Multinationals," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 13, pages 203-220, Palgrave Macmillan.

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