Limits and Scope and Conclusions

Abstract

This study has shown the relevance of the aluminium MNCs to the formation of the bauxite cartel of the mid-to-late 1970s. I have suggested that the co-operation of the international companies is crucial in any producer raw material cartel. I presented a model for predicting the response of the MNCs (co-operative, passive, or conflictive) based on the underlying characteristics of the particular industry in Chapter 1. In situations of demand inelasticity and oligopoly, the firms may be most open to government cartel efforts.