MNCs that played pivotal role in the internationalization of production, trade, and investment. They established overseas subsidiaries and operation, which facilitated the flow of goods, services, capital, and technology across national borders.
2. The expansion of international trade:
The removal of trade barriers, such as tariffs and import quotas, led to increased trade between nations. The formation of trading blocs, such as the European Union (EU) and the North American Free Trade Agreement (NAFTA), further reduced barriers to trade and increased economic interconnectedness.
3. The development of transportation and communication technologies:
Advancements in transportation, including faster ships, airplanes, and cargo containers, made it possible to move goods more quickly and efficiently around the world. Similarly, the development of technologies like the telegraph, telephone, and the internet sped up communication and information sharing, enabling firms and individuals to engage in real-time transactions and global collaboration.
4. The emergence of global financial markets:
The growth of global financial markets, such as the Eurodollar market and the issuance of international bonds, facilitated the flow of capital between countries. This increase financial interconnectedness allowed businesses to access funds and investors to diversify their portfolio globally.
5. The rise of international organizations:
The establishment of international organizations such as the United Nations (UN), World Bank, and International Monetary Fund (IMF) played a vital role in promoting global economic cooperation and facilitating international economic transactions. These organizations provided forums for countries to negotiate agreements, resolve disputes, and coordinate economic policies.