The Economic Impact of the Multinational Enterprise On the Host Country

Cover The Economic Impact of the Multinational Enterprise On the Host Country
The Economic Impact of the Multinational Enterprise On the Host Country
Zenon Soteriou Zannetos
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And even if resources are not in surplus quantities, the operations of the ■ multinational firm often encourage complementary resources to gravitate toward uses which have greater net marginal value product. In the process 9 It must be stressed that these problems also arise in the context of ^ domestic operations. Furthermore, the planning horizon of the state is not always longer than that of the user firm. A case in point is the insistence of some Arab countries for faster exploitation of th...eir oil reserves. Up to a certain point the longer the planning horizon the greater is the marginal cost of the natural resource.
we usually find that the price of these resources is bid up which indicates that the market mechanism for the efficient allocation of resources works.
But there is another aspect of the utilization of complementary resources with which we must deal and that involves the use of exhausting natural resources especially ecological. We have noticed all along that when something is public the tendency is for it to be abused.


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