The actions of multinational corporations are strongly supported by economic liberalism and free market system in a globalized
international society. According to the economic realist view,
individuals act in rational ways to maximize their self-interest and
therefore, when individuals act rationally, markets are created and they
function best in free market system where there is little government
interference. As a result, international wealth is maximized with free
exchange of goods and services.[11]
To many economic liberals, multinational corporations are the vanguard of the liberal order.[12]
They are the embodiment par excellence of the liberal ideal of an
interdependent world economy. They have taken the integration of
national economies beyond trade and money to the internationalization of
production. For the first time in history, production, marketing, and
investment are being organized on a global scale rather than in terms of
isolated national economies.[13]
International business is also a specialist field of academic
research. Economic theories of the multinational corporation include internalization theory and the eclectic paradigm. The latter is also known as the OLI framework.
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