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The distribution of capital and labour in the contemporary world is undergoing a radical change. Traditional industries in the West are in decline while in the third world cheap, plentiful labour is available and increasingly attractive. This book analyzes the implications of this situation for both developed and less developed nations. It examines the impact such a shift of resources will have on the rich Western nations that dominate the international system. Also it describes the likely domestic consequences for countries which have to reconcile the clashing interests of domestic capital and labour and to attract vital foreign industry and investment.