ABSTRACT
This chapter begins with the general observation that the actual geographical extent of the internationalisation of both production and trade during the last four decades of the century is highly uneven. On a global scale societal issues can no longer be divided into 'domestic' and 'international'. Transnational Corporation control the economic and social performance of many countries and also determine consumer tastes and patterns of consumption. The international division of labour phenomenon underlies the importance of both economic and non-economic variables in this era of global interdependence. The basic objective of the General Agreements on Trade and Tariffs is to liberalise world trade and to contribute to economic growth and development. One theory of international trade has been described as the product cycle. Towards the close of the 1990s, developing countries have to contend with and adjust to a global financial and trading system which is in a state of flux.
