Globalization of industry has increased rapidly as more firms from more countries and more industries undertake a wider variety of inter-linked activities outside their home countries. Increasing globalization raises industry and trade policy issues specific to individual sectors, and general issues related to liberalisation and the business environment. By underlining the importance of economic efficiency and competitiveness, globalization diminishes the effectiveness ofnarrow industrial support policies and the rationale of national identity underlying some policies. Greater international cooperation is required to promote liberalization and non-discrimination, cooperation in R&D, and technology development, and in such areas as competition policy. Seven sector case studies are included, illustrating long-term globalization trends and sectoral policy issues.
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