By Max Kohnstamm
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Additional resources for A Nation Writ Large?: Foreign-Policy Problems before the European Community
In the long run, an adequate solution, can only be found on a global level, such as the proposal by Raymond Vernon1 for a tax on the overall profits of a company, distributed according to a key system to all host countries where the company operates. Pressures for such a solution may well come from the companies themselves, caught between the contradictory demands of competing national authorities. A more fundamental challenge to domestic policy-making is the practice known as 'cash management'.
2 The Community and the Changing World Economic Order Theo Peeters and Wolfgang Hager The beginning of this decade has brought uncertain but steady progress towards a negotiated order in East-West relations. Among the industrial countries of the West (which in this context includes Japan), however, relations have been marked by crisis, strife and uncertainty. That part of the international order which is most relevant to our welfare seems to be stretched to breaking point by new demands made upon it.
As in the past, by making exceptions. The crucial point is how these exceptions are made: unilaterally and/or bilaterally on the basis of political power, or by common consent; permanently or temporarily. In the latter case, every retreat from free trade would have to be justified in social and economic terms, giving the affected partners the opportunity to suggest alternative strategies for achieving the same ends. There would thus have to be much greater transparency - which incidentally would benefit rational discussion of domestic socio-economic policies.
A Nation Writ Large?: Foreign-Policy Problems before the European Community by Max Kohnstamm