an understanding of their actions and impact. The fact that the code definitional criteria rely on operational factors more than equity characteristics constitutes an important ~uilt-in advantage. 50. The conceptualization of policies on transnational corporations within the code framework might therefore need to take into account these changes in a parallel fashion, to match the evolved and expanded group of enterprises that now crowd under the common umbrella label of "transnational corporation". In policy terms, these changes could mean that: (a) The locus of effective responsibility for, or effective control over, many important international business operations is becoming more difficult to ascertain; {b) A transnational corporation's overall commitment to a particular product line, stage of production, · or geographical location is less stable over time, since less of a transnational corporation's own capital is directly invested ana fewer business functions are internally integrated. 51. If these policies focus primarily on traditional transnational r.:orporation types, or rely on the unilateral actions of national Governments, it will fail when. applied to emerging international issues that arise from the growing ran9e of interdependent business e.rre.ngements omong tran:snational corporal:ions !r:-om different countries. 'l'hus, Governments might need to be prepared to adjust their, responses in order effectively to address complex business structures and processes. This step does not require a redrafting of current definitions but: the application of the code concepts to the types of transnational corpor~tion -relate~ issues that would need to be addressed currently and in the future. I. • • E/C.10/1990/5 English Page 17 52. It would be important, therefore, first to assess how the code concepts apply to issues affected by changing international business relationships that weaken central transnational corporation control mechanisms while dispersing both authority and responsibility. More transnational corporation activities are 
**Analysis**
The text discusses the evolving nature of transnational corporations, their impact on international business relationships, and the need for governments to adapt their policies to address complex business structures and processes. It highlights the importance of understanding the actions and impact of these corporations, particularly in the context of international trade and economic development.

**Category**
International trade, Industry