ABSTRACT
International trade is generally conducted by institutions rather than individuals. While in some countries and in some sectors, state-run enterprises are the major agents of international trade, it is generally private firms that play the most important role in both developed and developing countries. And, with the expansion of multinational enterprises, foreign private investors – always important in the traditional export sectors of ldcs – are of growing significance in the conduct of international trade. While global figures are lacking, it has been estimated, for instance, that US-based multinational firms – which predominate among multinationals – account for one-quarter of total world merchandise exports and one-fifth of world exports of manufactures. 1 A large part of the trade conducted by multinationals is, moreover, carried out between affiliates of the same firm: estimates suggest that between one-eighth and one-quarter of world exports are made in this way. 2 Such trade is clearly likely to possess different characteristics from that conducted by independent agents in an open market setting.
