Governmental Actions: Influencing the Economy

The primary policies utilized by states to influence economic policy as listed by the text are macroeconomic policies (fiscal and monetary policy), microeconomic policies (regulatory, subsidy, and competition-based policies), tariffs, and non-tariff barriers, all of which may impact the exchange rates of global currencies
Fiscal policy
- Aims to vitalize/revitalize a state’s economy through government action, namely through the restructuring of government spending
- This can be done by editing the national budget and changing tax rates
- Generally speaking, government spending is increased and tax rates are decreased when a state attempts to “stimulate” the economy, and the inverse is true when attempting to slow economic growth
Monetary policy
- Focuses on changing the supply of a given currency in a country, and the amount of money in circulation
- This is mainly accomplished through working to change interest rates in an attempt to change overarching economic conditions, like countering inflation and unemployment

Multinational Corporations and Economics

Multinational Corporations have wide-ranging effects on the world both economically and politically.
Economically speaking, they have significant impacts on international trade (according to page 263 of the text, they account for 50% of such trade) and play an instrumental role in global economic coordination, development, and communication.
- Their role in economic development specifically can be exemplified through their foreign investments, production of the vast majority of global profits, and their international operations.

MNC which generally serves to negotiate and determine internationally-accepted rules and regulations surrounding trade
- This is primarily accomplished through ambassadors representing individual states meeting to discuss economic policy and trade conditions such as tariffs
- The vast majority of members (specifically those that represent more developed states) have had several disputes with each other
- This occurs because MDCs tend to have better and more accessible communication technology and more efficient methods of transportation
Mostly consists of MDCs

The primary policies utilized by states to influence economic policy as listed by the text are macroeconomic policies (fiscal and monetary policy), microeconomic policies (regulatory, subsidy, and competition-based policies), tariffs, and non-tariff barriers, all of which may impact the exchange rates of global currencies
Fiscal policy
- Aims to vitalize/revitalize a state’s economy through government action, namely through the restructuring of government spending
- This can be done by editing the national budget and changing tax rates
- Generally speaking, government spending is increased and tax rates are decreased when a state attempts to “stimulate” the economy, and the inverse is true when attempting to slow economic growth
Monetary policy
- Focuses on changing the supply of a given currency in a country, and the amount of money in circulation
- This is mainly accomplished through working to change interest rates in an attempt to change overarching economic conditions, like countering inflation and unemployment

Multinational Corporations have wide-ranging effects on the world both economically and politically.
Economically speaking, they have significant impacts on international trade (according to page 263 of the text, they account for 50% of such trade) and play an instrumental role in global economic coordination, development, and communication.
- Their role in economic development specifically can be exemplified through their foreign investments, production of the vast majority of global profits, and their international operations.

MNC which generally serves to negotiate and determine internationally-accepted rules and regulations surrounding trade
- This is primarily accomplished through ambassadors representing individual states meeting to discuss economic policy and trade conditions such as tariffs
- The vast majority of members (specifically those that represent more developed states) have had several disputes with each other
- This occurs because MDCs tend to have better and more accessible communication technology and more efficient methods of transportation
Mostly consists of MDCs