There are critical stages in the foreign policy, meaning that normally move corporate policy meaning to favor military funding (Mehay, Stephen and Loren 1990). For instance, the events in 1979 in which the USSR invaded Afghanistan, the overthrow of pro-US Shah government by the Iran revolution led to the successful push by organizations to support increased military spending (Ali 2007). Moreover, the corporations that have fixed foreign investments in developed world, advocated for US militarization to protect their investments, especially during the revolutionary turmoil in the developing world. Similarly, the 9/11 attacks provided those who advocate for military spending, a good opportunity of expanding a policy of transitioning from the cold war to the post-cold war period (Sawhney, DiPietro and Anoruo 2007). The advocates of the US militarization who experienced substantial military spending cuts and peace divided was dividend since cold had …show more content…
They proposed that disaggregating the military spending into defense personnel, defense contracts, and developing multivariate models for assessment of the determinants (what determinants?). The findings revealed that defense contracts enhanced countercyclical trends responding to the economy’s downturns and also in the direct option to various measures of state of the power of the corporates, but the agreements are normally harmfully connected to the might of the labor unions(Doesn’t make sense (English) ). The researcher also did not find the effect of the political partnership on the defense spending (Missing sentence?). An investigator used the statistics from the year 1963 to 1994 to examine the benefits of the defense expenditure on a(a or the) growth of the per capital (Capital or Capita) income (Hooker 1996). He realized that increasing military expenditure caused an increase in the personal revenue. Goldstein (1988) projected that each percentage of the GNP that is distributed to the defense expenditure, reduces the economic growth by 5 percent. Besides, enlarged spending on military may consume the exportable products from defense industries, and therefore, increase trade deficit. Such leads to a weak national currency, increasing inflation, and the increased