The advances in transportation and communications have caused and
supported the emergence of a global economy. The small economies
are especially attractive to multinational companies for siting of
production facilities because of lower costs and friendlier
governmental attitudes. The emerging international economy has had
an impact on third world countries in many ways. In general,
international linkages and local economic sovereignty are inversely
related. However, participation in the international economy is
needed to balance the import/export flow used to improve the
conditions in the smaller countries. Although external economic
linkages are not risk-free, it appears that a certain amount of
foreign involvement is necessary for successful economic
development and improvement of conditions for small emerging
nations. This work uses the Caribbean nations as a laboratory to
show the various aspects of international linkages. This is
especially appropriate because of the proximity of these countries
to the North American markets.
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