This paper is concerned with manufacturing in advanced economies. It analyses the broad trends operating both within these economies and in the global economy surrounding them. The paper rejects the view that advanced economies can rely mainly on services and argues that a strong manufacturing industry is vital to their prosperity. Manufacturing industry in these economies has already undergone painful restructuring and new problems lie ahead, but there are also new export opportunities arising from the growth of markets in developing countries. The paper concludes by analysing global trade patterns and the impact of transnational corporations.
