Since World War II, there has been a major change in the conditions under which international economic transactions take place. Foremost among them are the much more important role of firms, especially multinational corporations, and the reduction of barriers to the international movement of goods and of proprietary technology.

This book is designed to provide a basic analysis of the modern conditions. It emphasizes the multidimensionality of modern international economic relations involving direct investment and the much greater importance of goods, which rely heavily on proprietary technology. These new conditions contrast starkly with the traditional, unidimensional emphasis on international trade and need a fresh approach.