In an increasingly competitive world marketplace, can cross-national variations in law—in this case, in labor law—produce markedly different economic outcomes? In both The Netherlands and the United States, law has helped rationalize the hiring of port labor and provide dockworkers greater security. However, American longshoremen have captured a larger share of the productivity gains flowing from the mechanization of cargo handling than have Dutch dockworkers. Because of constraints imposed by American longshore unions, container terminals in Rotterdam are more efficient and less costly to users. These differences can in part be explained by American labor law, which encourages a more adversarial, self-seeking union posture than does the labor law structure in The Netherlands. Probably more important, however, are economic factors, which expose Dutch dockworkers (but not West Coast longshoremen) to competition from ports in other nations. Similarly, international competition, intensified by the technological revolution in transportation, seems likely to impel cross-national convergence in many spheres, leveling differences in law and in legally influenced outcomes.