In fact, "free trade" is a misnomer for a system shaped and dominated by multinational capital.

Conflict is therefore seen as inevitable and trade unions are a natural response of workers to their exploitation by capital.

This free investment by foreign capital has also been criticised.

Its first quarter 2009 figures were as bad, with revenue down by 40pc and surplus capital falling from £850m at the end of December to £800m.

The latter was only possible if the state was seen to be separate from direct control by capital.

Smith saw this income as produced by labour, land, and capital.

Recently, however, there have been some reports of involvement by foreign capital.

His economic policy attracted huge direct investments by foreign capital, much of which came from the U.S.

It will be a market in itself, ready for development by western German capital.

By this deal, we are setting up a situation where they participate by controlling capital.