A multinational firm trading in exhaustible resources is examined. The exhaustibility of the transferred good requires the generalization of some existing concepts and introduces some new results. The optimal extraction strategy is examined, and comparative static implications of government policies are established. The performance of the multinational is compared with the outcomes that arise in the absence of a multinational, under varying assumptions concerning the nature of the market in the latter case. The behaviour of the firm is seen to depend crucially upon the transfer price limitations imposed by the governments. This issue is complicated by the lack of an obvious set of such limitations.