labor in the wake of free trade. For most developing countries, this theory posited that skilled labor income would suffer to a greater extent that would unskilled labor income in the wake of freer trade. Such an outcome would narrow the income spread between skilled and unskilled labor in such developing countries (Ekelund & Hebert, 1996).
Because it is held that international trade increases the scope of labor specialization, and achieves economies of scale through the enlargement of markets, most economic theory holds that international trade should be free of artificial restrictions. The most recent experience of many developing countries has not conformed to the various international economic theoretical predictions, however, and the validity of many of the essential policies upon which international economic development is being based are being called into question (World Bank, 1997).
One important problem within the context of this policy dilemma appears to be the mistaken assumption that global corporations are seeking
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