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• Fair trade: There are fair and equal terms for exporters to compete.
At this point export subsidies on manufactured products were

restricted, and limits were imposed on subsidisation of primary
product.

• Settlement of trading disputes: If there was any dispute between
two GATT members, they would be required to consult with each
other. If they could not determine their differences then the members
of GATT would moderate the issue.

• Stability and predictability: Members were asked to facilitate fixed
trading conditions; also government should have stable regulations
for importers as well as other aspect of gaining access to their

markets. Trade was managed through the agreement of the EU and
US to the 1996 D’Amato Act, which penalised firms investing in the

Iranian or Libyan energy sectors, as well as the Helms Burton Law
banning trade with Cuba.

3.8 Lesser developed countries (LDC’s)

According to Harrison et al. (2000, p. 207) about half of the world’s nations
had a per capita GDP of US$1 or less in 1996. Nearly two-thirds of these

are in Africa. Paul and Barbato (1985) recommend that multinational
companies that decide to become involved with LDC markets should be

familiar with two models: Rostow’s economic development model and the
North–South model. Rostow (1960) indicates that the involvement of
multinational companies in LDCs will help those countries improve their

economic situation (Paul and Barbato, 1985). Rostow was adviser to
Presidents Kennedy and Johnson (Halberstam, 1969), and the model was

criticised as being a justification of the expansion of multinationals and of
obscuring the negative consequence of Western economic influence on
LDCs (Frank, 1969; Tipps, 1973). The North–South model, based on a

debate started in the 1970s, suggests that LDCs may never make it to a
level of development comparable with the USA, some European nations

and Japan (see Beckford, 1971; Vernon, 1977; Evans, 1979). According
to this school of thought, multinationals hinder rather than help the
economic development of LDCs (Paul and Barbato, 1985). This implies