Abstract
Globalization is a fashionable concept, but one that is weakly specified. A truly global economy would be one in which national processes are subsumed in and transformed by international markets and conditions of production. This development has not occurred and is unlikely to occur. Hence it is essential to determine the major trends in the international economy in order to assess its specific dynamics and the role of national and supranational agencies in its governance. Building on earlier work, the paper concentrates on the growth and distribution of Foreign Direct Investment (FDI) as the major trend since the earlier 1980s. The evidence relating to FDI is presented and the problems it poses and the possible mechanisms for its governance are assessed. In particular, it is argued that the regulation of both foreign trade and FDI involves quite distinct issues for governance and that their coupling together in the current framework emerging from the GATT negotiations is deeply problematic.