ABSTRACT
This chapter explores how the world economy has gradually become more and more integrated, and how at times this has resulted in imbalance within the international economy, which in turn has led to trade conflicts. It looks at the developments within world trade and gives examples of how it – despite general liberalisation – is often bound by various agreements limiting free competition between the participants in international markets. While countries such as South Korea, Japan, the United States and Germany have experienced an increase of the trade since the nineties, most other industrial countries have shown signs of stagnation in intra-industry trade. The chapter briefly discusses the developments in two quite particular market areas: Eastern Europe and developing countries. It explains how multinational corporations (MNCs) have expanded their businesses in line with trade development. MNCs have created a strong position of power that causes worry amongst certain groups.
