46/YOUR MONEY OR YOUR LIFE!
Transaction Costs and the Theory of the Multinational Enterprise) lists the
various problems MNCs can solve by placing themselves outside the
ambit of the market. Casson explains that the market does not allow
for contact between seller and buyer; that it means ignorance of one
another's needs; there is no agreement on price, no confidence that
the ordered goods conform to the buyer's specific needs; there are
trade tariffs, taxes on profits made in the transaction, price controls;
there is no confidence that goods will be returned in case of non
payment, and the list goes on (from Chesnais, 1994).
Does our dear Mr Casson realise that he has in fact formulated a
rather trenchant overall critique of the free market system per se?