The Positive Contributions Of Globalization

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ASTRI CRISTIN
016201400023
DIPLO 4

At first, trade only operate domestic in order to advance the national economy of each country. However, globalization offers a new solution that is able to bring inter-regional trade, one through Multinational Corporation (MNC) or commonly known as multinationals company. In the process, MNC provides a range of benefits in order to promote the international economy. It then makes the MNC as a non state actor that is very influential in the development of International Political Economy. A multinational corporation (MNC) has facilities and other assets in at least one country other than its home country. Such companies have offices and/or factories in different countries and usually have a centralized head office where they coordinate global management. Very large multinationals have budgets that exceed those of many small countries.

The MNCs play an important role in the economic development countries, especially for underdeveloped countries. There are positive roles of MNCs , they are;
1. Filling Savings Gap: The first important contribution of MNCs is its role in filling the resource gap between targeted or desired investment and domestically mobilized savings.
2. Filling Trade Gap: The second contribution relates to filling the foreign exchange or trade gap. An inflow of foreign capital can reduce or even remove the deficit in the balance of payments if the MNCs can generate a net positive flow of export earnings.
3. Filling

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