text: day-to-day activities many disparate strands of policy. In that context the international community looking at the interplay of those policy jssues may need a normative framework as a yardstick or gauge. 8. The relevance of this more integrated policy envirorunent for transnational corporation-related issues is suggested by the emergence of such new mechanisms as debt-to-equity swaps, whose financial benefits may be contingent on assurances that the resulting direct investments will yield trade-generated foreign exchange earnings. New interrelationships are also evident in debates about investment regulations that govern trade in services, or the effects of so-called trade-related investment measures (TRIMs) that often involve governmental incentives and di£incgntives covering a range of trade, investment and financial policies. 9. Another development that reflects the growing policy linkage between trade, investment and monetary issues is the broader integration occurring in regional economic zones. The European Community, initially a common market that developed around a co-ordinated trade policy, is moving rapidly towards an internal market· reform that will force a more common approach to the treatment of investment and stimulate further progress on monetary policy and fiscal co-ordination. The recently concluded Free Trade Agreement between the United States and Canada js far more than a trade· accord, merging into cross-border investment policies that s.hape­ business conditions in an increasingly integrated market where monetary ·rnovements · are already functionally linked. 10. Of special relevance for this increased linka~e between macro-economic policies is the integrative role played by transnational corporations, which incorporate trade, investment and monetary dimensions in their daily operations. Organized through the vehicle of foreign direct investment, transnational corporations channel global private financial flows through their networks, ejther I• • • E/C.10/1990/5 English Page 7 ancillary to manufacturing operations or as part of the rapidly expanding realm of transnational corporation service enterprises. The major portion of world trade 
analysis: The text appears to be discussing the complex relationships between various economic policies and their impact on international trade, investment, and monetary issues. It highlights the increasing integration of regional economic zones, the role of transnational corporations in global private financial flows, and the need for a normative framework to gauge the interplay of these policy issues.