Free Trade in the World

- This has led some analysts to suggest that developing countries cannot compete internationally in services and that policies to liberalize trade in services would be of limited interest to them. This view is mistaken. Developing countries are already carving out areas of comparative advantage in IT-based services, a process that will continue to evolve. Moreover, liberalization is not only about expanding exports; even more important is its role in helping domestic producers gain access to more efficient and diversified services in world markets.

- Another important constraint faced by developing countries concerns the quality and relevance of the training of their work forces. In-house training can partially mitigate the shortcomings of the formal educational system in preparing workers to use IT in service industries. Many MNC's have the money, time and resources to train individuals so that they are properly versed in positive business practices. The main challenge, however, is to make the general population receptive to technological change. As economies become more service-intensive, workers must be retrained more