This is a study of how global firms operating in international markets relate to national governments. It is the first international comparative study of the role of business associations, government policies and business strategies in a major global industry, chemicals. Because of its importance in the world economy, the chemical industry proves a profoundly instructive case study for political economy in general and, more specifically, for the analysis of the principal mechanisms of social regulation in the world economy. The study covers two decades that have been characterized by extensive technological innovation, sectoral shifts in international trade and far-reaching social transformation.