Governments are concerned about the impact of industrial globalisation on their domestic economies in terms of employment, growth and innovative capacity. In the Committee on Industry and Business Environment (CIBE), they review trends in industrial globalisation and how to enhance the flexibility and competitiveness of their industries and enterprises in the international context.

The CIBE measures the extent and nature of industrial globalisation through its statistics on the activities of the affiliates of multinational enterprises and other indicators. The international activities of firms now extend far beyond traditional forms of trade and investment. Cross-border mergers and acquisitions, strategic alliances and electronic commerce are also studied.

Declining computing, communications and transport costs, coupled with trade and investment liberalisation have prompted firms to adopt global strategies. Cross-border M&A are now the largest component of foreign direct investment. And international strategic alliances for research, production and marketing grew more than six-fold in the 1990s.

The CIBE identifies policies to improve international business growth and encourage positive spillovers for national economies. It discusses the need for international policy co-ordination to take into account the growing global nature of firms. It reviews needed structural policies to allow smooth industrial restructuring and minimise social disruptions.