ABSTRACT
Most recent studies of the political economy of transnational enterprises focus on the interactions of manufacturing and extractive corporations with national governments. Service industries are ignored for the most part, or grouped unceremoniously (and incorrectly) with other concerns. To understand the role of service industries within the world economy requires a different framework. 1Service enterprises are catalysts which support the linkages between nations and transnational firms, holding together the international economic system. Without banks and insurance enterprises, for instance, the trade, monetary and investment systems would cease to function. It is therefore important that the role of service industries within the system as well as their interactions with governments be e xamined.
