Free Trade in the World

- This has led some analysts to suggest that developing countries cannot compete internationally in services and that policies to liberalize trade in services would be of limited interest to them. This view is mistaken. Developing countries are already carving out areas of comparative advantage in IT-based services, a process that will continue to evolve. Moreover, liberalization is not only about expanding exports; even more important is its role in helping domestic producers gain access to more efficient and diversified services in world markets.

- Another important constraint faced by developing countries concerns the quality and relevance of the training of their work forces. In-house training can partially mitigate the shortcomings of the formal educational system in preparing workers to use IT in service industries. Many MNC's have the money, time and resources to train individuals so that they are properly versed in positive business practices. The main challenge, however, is to make the general population receptive to technological change. As economies become more service-intensive, workers must be retrained more frequently, and their performance becomes more dependent on access to IT. Accordingly, the diffusion of computer literacy should receive special attention in education strategy.

- In sum, the most dynamic trade routes of the twenty-first century will be dominated by transactions in intangibles rather than goods. Service industries will be responsible for the "roads" of the global "infostructure" and they will be the main providers of the content to be traded via electronic means. The adoption of a liberal trade and investment regime is essential for countries to maximize the benefits to be derived from the internationalization of services and to move toward the information age. This is particularly true for developing countries.

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