In considering the mechanisms controlling the expression of genetic information in mammalian cells, one is faced with the consideration that the multicellular organism exists in two environments. The external environment requires controls for the maintenance of nutrition and respiration. The internal environment must be maintained constant for the survival of the organism as a whole. The liver is in a unique position, with its cells subject to pressures from both internal and external environment. Several mechanisms of enzyme regulation in which one enzyme demonstrates both controls are discussed. Elimination of the portal system, the liver's direct contact with the external environment, does not alter the basic control mechanisms. However, neoplastic transformation of hepatic cells radically alters both internal and external controls. Most external controls are lost, and those that remain are in part dependent on internal control mechanisms. On the basis of previous findings, the membrane of the endoplasmic reticulum is suggested as being the site of action of the steroid hormones.