lmport~nce of the distinction between trade and foreign direct investment, because depend1ng upon whether a transaction was defined as "trade" or "foreign direct investment", different policy regimes might apply. 87. He referred to some sectoral considerations relating to the role of transnational corporations in services, drawing attention to the role played by transnational corporations in international transactions in the six industries examined by the Group of Negotiations on Services of the Uruguay Round. Their impact upon the host economies in such areas as employment, trad£·, ::ind the balance of payments was likely to vary from sector to sector. Their major common contribution to host country development was, however, the transfer of technology, including knowledge, skills and management expertise. Measures promoting the transfer of technology by transnational service corporations would, therefore, be an important element of any multilateral framework relating to services. In that context, a number of concepts that had been elaborated in international instruments relating to foreign direct investment including, in particular, the Code of Conduct on Transnational Corporations, were relevant to the negotiations on trade in services and might usefully complement any eventual framework on trade emerging from the Uruguay Round. 88. Some delegations taking the floor agreed that issues relating to the liberalization of services and the role of transnational corporations in the delivery of services were important in the context of the multilateral trade negotiations of the Uruguay Round. One delegation, however, affirmed that the discussions taking place at the Uruguay Round should be separated from those regarding the code of conduct on transnational corporations. The difficulty of distinguishing between trade, foreign direct investment and other modes of delivery was acknowledged. One delegation expressed the view that an improved understanding of the distinction between various types of transactions in services could be 
**Analysis**
The text discusses the importance of distinguishing between trade and foreign direct investment in the context of the Uruguay Round negotiations on trade in services. It highlights the role of transnational corporations in the delivery of services and the transfer of technology, including knowledge, skills, and management expertise. The text also touches on the difficulty of distinguishing between various types of transactions in services.

**Category**
International trade, Industry