In the 1980s many developed countries were increasingly tempted to improve their national competitiveness by adopting protectionist policies. This book demonstrates that such policies would be mistaken and do serious damage to industries in the countries concerned. This book, based on extensive original research provides important empirical evidence concerning the proportion of all trade which is intra-industry trade; concerning the key role of multinationals in the growth of intra-industry trade and concerning the contrasting response – particularly between those companies which are multinational parents and those which are multinational subsidiaries – to the changing competitive conditions.