The articles in this volume, written by leading scholars from a host of different countries, examine the significant transformation which has taken place in the last decade concerning the manner in which international trade occurs. In particular, the increasing trend towards the integration of domestic and international markets is considered. By combing concepts from industrial organisation with internation trade principles, three major types of questions are considered: 1. How have the patterns of trade evolved among the most devloped nations? 2. What accounts for the observed shifts in competitive advantage? and 3. What is the appropriate role for government policy under this new regime of trade patterns? The papers examine, both theoretically and empirically, how market structure characteristics such as scale economies, concentration levels, advertising strategies, R&D strategies, and optimal plant size respond to market globalization. In addition those essential factors, including appropriate public policy responses available to countries, which have enabled companies in specific industries and countries to gain the competitive advantage are identified. Several of the contributed papers suggest that, just as domestic policies may affect international trade performance, exposure to international competition appears to have certain beneficial effects on the preformance of the domestic industry.