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.The chance to make fortunes in trade hasdriven the expansion of empires from before Roman times, throughthe race to establish European colonies, to the emphasis on globali-sation today.World economic fortunes are inextricably intertwined.There yet remain some corners of the world where the globalreach of trade has not made significant inroads  such places mayretain prized traditional cultures but they also support very lowmaterial standards of living.Given the choice, people in suchcommunities usually want the increasing incomes that access toworld markets gives them.Multinational corporations have played an increasingly dominantrole in world trade since the early twentieth century and we haveseen that their operations can bring advantages and disadvantagesto countries that host their operations.National governments,however, are responsible for setting the rules for commerce withintheir borders and MNCs can only do business within the termsof contracts agreed.It is for host nations therefore to monitorthe balance of interests served.Economics argues that the morethe competition that obtains, the more the efficiency and less the© 2004 Tony Cleavercorruption that is likely to result.Note that efficient markets requirethe free exchange of information  open access to the media can thushelp safeguard against closet deals being signed that enrich only aminority.Lastly, growing multinationalism in business is, in the end,the best defence against certain countries being exploited for thealleged benefit of others.ECONOMIC IMPERIALISM, as it is called, wasthe result of companies of one distinct nationality trying tomaximise their returns at the expense of a foreign nation.But themore a MNC raises long-term capital from stock holders in hostcountries and the more it employs local managers in senior positions that is, the more truly multinational it becomes  then no countrybecomes foreign and thus the more likely the ethos within the firmwill seek to promote equitable outcomes for all parties.Summary" Imports act as a leakage, and exports an injection, into the circularflow of national income in any country." For long-term equilibrium, a country must attempt to secure abalance of all its international payments consistent with the fullemployment level of national income." As a general rule, the more that international trade is free from controlsand restrictions, the more all participating countries can benefit." Free trade, for poor countries in particular, may be a long-term goalthat requires short-term management.It is important that they arenot shut out of rich country markets, nor are they stifled by theeconomic power of huge multinational corporations." Where economies of scale exist and where markets, resources andrisks are all geographically dispersed, multinational corporationshave evolved as remarkably effective mediums in the organisation ofworld trade." The experience of past abuses, the global spread of information,increasing competition and the growing internationalism of multi-national labour and capital can moderate the exploitative tendenciesof modern business.Growth in world trade and incomes, and theincreasing dispersal of both, is thereby possible for the future.© 2004 Tony CleaverFURTHER READINGAn excellent and encyclopaedic coverage of international tradeissues can be found in Yarbrough, B.V.and Yarbrough, R.M.(2000)The World Economy: Trade and Finance, Harcourt & Co.For up-to-the-minute news and information on specific countries;for regular surveys on trade, development, finance and the environ-ment, and for a consistent argument in favour of free trade, TheEconomist magazine is without equal.For a contrary, more sceptical view on the forces of globalisation,but also including a wide range of offerings from an interestingselection of economists, visit the trilingual Chilean website:www.rrojasdatabank.org© 2004 Tony Cleaver7CAN WE REDUCE POVERTYAND PROTECT THEENVIRONMENT?This final chapter brings together a number of the concepts, themesand theories introduced and analysed in the preceding pages [ Pobierz caÅ‚ość w formacie PDF ]