Global Economy vs. Traditional Economy

An economy can be described as closed or open. A closed economy is one where all the earnings and income flows are locally generated. This does not involve the issue of importation or expectation. On the contrary, an open economy is one that encompasses trade with other countries and the local traders. In the recent past, international companies have invaded the local markets and are bringing serious economic concerns to many nations. States are interested in stabilizing their economies and safeguarding them from the invasion of the international companies. This has been the center of discussion for most government leaders and has contributed to the political process of nations.

Effect of multinationals

Multinationals have proved to be more effective and efficient as well as providing better quality products than most local companies. For instance, McDonald's is currently one of the most sought after company by...
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