ABSTRACT
Integration of the world economy has long been an issue of significant academic interest. Recent available evidence indicates that significant shifts in trade flows between and among the economic regions of the world must be expected in the coming decades. Although international business will still be centered on the interlinked economies of the Triad—Western Europe, Japan, and North America—the contribution of other countries to world trade, particularly the “tiger” economies of Asia, will grow in significance (Ellis and Williams, 1995). Such distinctive shifts in world business are caused by a combination of external drivers and country-specific policy measures that favor economic liberalization and foreign direct investment. Even in the developing economies of Africa, Latin America, and the rest of Asia, recent economic development policies have been aimed at reducing direct state involvement in business. Restrictive legal and regulatory frameworks are being dismantled, and a gamut of macro- and microeconomic measures are being adopted to encourage private-sector development by both local and foreign investors. China's open-door policies, which began in the early 1980s, are a classic case in point, but similar evidence can be found elsewhere.
