ABSTRACT
Let us start with some illustrative examples that emphasize the importance of this kind of world integration. The annual report of the World Trade Organization (WTO, 1998) presents one such example: the production of a particular car manufactured by one of the large US automobile companies involved no fewer than nine countries in some aspect of production, marketing and selling. Thirty per cent of the car’s value goes to Korea for assembly, 17.5 per cent to Japan for components and advanced technology, 7.5 per cent to Germany for design, 4 per cent to Taiwan and Singapore for minor parts, 2.5 per cent to the UK for advertising and marketing services, and 1.5 per cent to Ireland and Barbados for data processing. This means that only 37 per cent of the production value of this ‘American’ car is generated in the USA (WTO,1998, p. 36).
