Multinational Corporations
The next time you purchase a product at the mall, try and investigate where it has travelled to before it got into your hands. You might be surprised. Say you purchased a sequined dress. The cotton might have been picked in china, and then shipped to Bangladesh to be assembled, afterwards shipped to Colombia to be crafted, and finally shipped to the United States to be sold. It’s really amazing to think of how much history actually lies behind each and every product, not to mention the history that lies behind globalization.
Globalization
The liberal economic theory is based on the fact that not all state 's territories include the blessing of various natural resources. Therefore, state economies over the years have established several laws that make economic global trade a rather fair transaction. In its core trading was created to facilitate the gaining of products for territories in which producing a specific good might be limited due to their natural resources from those with comparative or absolute advantage. Economic liberalists believe that governments should not interfere in the markets, because international wealth is maximized when states practice comparative advantage and specialize in certain products. It makes more sense for a country with easier and cheaper ways to produce a specific product do so in abundance and share it through global trade with the world, rather than it be extremely difficult and costly for a single state to do it alone. Through foreign direct investment, multinational corporations are able to invest in other countries by establishing their own facilities in foreign territories. This is the base of globalization. Through FDI and MNCs companies are locating closer to customers and introducing themselves in the same area as competitors, meanwhile they hire local manufacturers and employees to assist the production of their product. By doing so, they not only fuel the international economy by creating a larger amount
Globalization
The liberal economic theory is based on the fact that not all state 's territories include the blessing of various natural resources. Therefore, state economies over the years have established several laws that make economic global trade a rather fair transaction. In its core trading was created to facilitate the gaining of products for territories in which producing a specific good might be limited due to their natural resources from those with comparative or absolute advantage. Economic liberalists believe that governments should not interfere in the markets, because international wealth is maximized when states practice comparative advantage and specialize in certain products. It makes more sense for a country with easier and cheaper ways to produce a specific product do so in abundance and share it through global trade with the world, rather than it be extremely difficult and costly for a single state to do it alone. Through foreign direct investment, multinational corporations are able to invest in other countries by establishing their own facilities in foreign territories. This is the base of globalization. Through FDI and MNCs companies are locating closer to customers and introducing themselves in the same area as competitors, meanwhile they hire local manufacturers and employees to assist the production of their product. By doing so, they not only fuel the international economy by creating a larger amount
Cited: Karen A. Mingst and Ivan M. Arreguin-Toft. “International Political Economy”. Essentials of International Relations 6th Edition (New York: WW Norton, 2014), 308-348.