Multinational Corporations And Other Institutions Essay

819 Words May 5th, 2016 4 Pages
Multinational corporations and other institutions play an important role in the international political economy. Multinational corporations are a forefront of the concept of liberal economics. Economic liberals suggest that MNCs are engines of economic growth in the international system. MNCs also are a liberal ideal of an interdependent world economy. MNCs have a positive impact on the international political system for many reasons. One reason is because they take the integration of national economies beyond trade and money to the internationalization of production. Other reasons include: they invest in capital stock, move money to the most efficient markets, and they finance projects that industrialize and improve agricultural output. MNCs are overall aimed to positively impact the international political economy but also influence politics by shaping the policies of their home state and other states. Other international organizations that support economic liberalism within the international political economy include the World Bank, the International Monetary Fund, and the General Agreement on Tariffs and Trade, also known as the World Trade Organization. The World Bank was designed to initiate and help with the reconstruction of post-WWII Europe. Towards the middle of the 1900s the World Bank shifted their focus to development instead of reconstruction. The purpose of the World Bank is to loan its funds to states for economic development projects.
The role of the…

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