around identifying and addressing those issues that are particularly applicable to enterprises conducting transnational operations, even though the standards may~also re!lect good practice where relevant for local firms as well. Changes ill macro-economic and geo-political factors, along with sectoral investmellt. shifts and the metamorphosis of transnational corporation organizations. alter the mix of issues significant to transnational corporation discussions within the code fram_ework. In some cases the application and outlook of traditional issues are transformed, while in other instances new or expanded topics arise to cl,\im higher priority attention. A sampling of examples will indicate the possible impact of changing conditions on the context for future transnational corporat.iou discussions and the possibilities they offer for renewed interest in the code. I ••• E/C.10/1990/5 English Page 18 55. New priority attention in the code's follow-up discussion might be due to matters such as the indirect employment impacts of transnational business networks, particularly their linkage function between developing and developed country markets. Transnational distribution and marketing operations can indirectly enhance employment objectives in developing countries by providing a channel for those countries' exports to the developed economies. Without ties to transnational corporation networks, preferably through long-term subcontracting or contracting commitments, the breadth and depth of these increasingly integrated markets may otherwise exceed the resources of most developing country exporters. 56. Cross-investments by transnational corporations located in the major developed markets reinforce interdependent ties between these regions , deepening both economic and political stakes in establishing co-operative multilateral relationships among governmental entities. Lacking a similarly balanced cross-investment position running north to south between developed and developing countries, the danger is that these regions will pull further apart. The challenge will be to encourage market linkage developments arising from the recent metamorphosis of transnational corporation structures in a way that supports North/South political as well as economic relations . 
**Analysis**
The text discusses the impact of transnational corporations on employment, economic development, and international trade, particularly in the context of developing and developed countries. It highlights the importance of establishing cooperative relationships between governments and the need for balanced cross-investments to promote economic and political ties between regions.

**Category**
International trade, Employment