On Economic Bargaining between African Governments and Multi-National Companies

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Abstract
The activities of multi-national companies provide primary sources of economic contact between African countries and the industrialised world. The companies' operations in both resource and product markets are often influenced by impositions made, or not made, by host governments in Africa. Such impositions result from bargaining between governments and companies in which each negotiating agent is intent upon obtaining the most preferred conditions—and these are affected by variables that occupy the central focus of our analysis. First, we outline what we believe are crucial variables that affect bargaining outcomes: i.e. particular patterns of benefits and costs arising from the ways that companies manage their businesses in developing lands. Second, we note particular instances where the critical variables appear to be influential, and explore how closer concentration on these might lead to more preferential outcomes from the viewpoint of African governments.

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