Globalisation In Globalization

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As globalization has increased so has trade and FDI. These changes have resulted in the reduction of barriers between countries and a growing change of the power structure of the international system. Multi National Enterprises (MNE’s) and other companies have been able to remove some of the power from the governments and gain more influence in how the world works. With how things stand in some countries today it is possible for a foreign company to sue its host country if that country adds governmental regulations like environmental restrictions that end up decreasing the companies’ profits. This ability by these companies is a fairly new idea and continues to change. After the World Wars there were lots of new nations formed due to the ending of colonization. As these new countries became independent they needed capital and resources that might have been previously supplied by their colonizer. As many of these countries saw the immense power and wealth of their colonial ruler they strived to grow and become like them. “It takes money to make money” was a very relevant statement to sum up the struggle that restricted their growth. They needed foreign help to have any chance of catching up with the powers at the time or even just to achieve sustainable growth. Some companies saw opportunities in these new markets but it was very risky, any investment had the opportunity to lose everything they tried to invest. Many of the developing countries formed after the World Wars were

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