text: 57. The role of transnational corporat ions in the international expansion of service sector industries is another development that raises new issues for the future transnational corporation discussions within the code fromework. Service industries are among the most heavily regulated sectors within any national economy, providing fertile ground for international conflicts over the approach and application of national regulatory schemes. One reason for such extensive regulation of services is the extent to which these activities penetrate a country's economic and social fabric, touching the daily lives of individual citizens. Intangible flows of information, skills and financial resources, the assets upon which service sector competitiveness depends, cannot be kept as conceptually or practically segregated in a country's economy as ·the production of physical goods. 58. Service sector transnational corporations that introduce ·a "foreign" element into these domestic processes may thus raise a set of future political issues that are potentially more sensitive and challenging for international co-operation than traditional controversies over natural resource ownership or wage-rate exploitation. While transnational corporations provide the building blocks that allow for a dynamic and globally interdependent services network, a new level of international co-operation and co-ordination will be necessary to sustain the benefits of global integration in the face of nationalistic fears and pressures for restrictive unilateral regulation and control. Additionally, many provisions already agreed to in the draft text of the coc1e are beneficial and db:ectly relevant to discussions on trade in services and trade-related investment measures which are under way in the GATT-sponsored Uruguay Round of trade negotiations. 59. A possible extension of this activity would be to encourage co-operation among transnational corporations and Governments in regulatory co-ordination in the international financial sector. stock market events, co-operation appears especially imperative further improving In light of recent among the world's I ••• E/C.10/1990/5 English Page 19 
analysis: This text discusses the role of transnational corporations in the international expansion of service sector industries, highlighting the challenges and opportunities for international cooperation and regulation. The text also touches on the need for coordination in the international financial sector. These themes suggest that the category should be related to economics and international trade.