ABSTRACT
This chapter defines the new international division of labor (NIDL) and delineates the difference between it and previous divisions of labor in the world economy. It reviews the changes which have taken place in the modern corporation. Many of these changes have been in response to the NIDL and the more complex economic environment it has created for corporations. The chapter focuses upon the new corporate demands for services from banks, law firms and accounting firms and links these new demands to both changes in the nature of institutions providing these services and to the emergence of global cities. It explores the dimensions of the emerging world urban hierarchy of corporate headquarters and sophisticated corporate services, placing its main emphasis on the United States, but drawing some parallels with developments in Western Europe. The chapter also explores a number of possible future trends in the new international division of labor and urban hierarchy.
