Measures of economic development involve having sustained economic growth and generating policies that promote and improve the standards of living and economic health of the regions. The best model for economic development is through economic and regional integration and developing international trade. Integration of the world economy through the collaboration of multinational companies can help to improve the economy.
Multinational companies include companies, such as MacDonald’s, I.B.M, and General Motors’ just to mention a few. They are responsible for up to 80%, which is 2/3 of the world trade and investments in many countries. However, too much economic integration of economies has led to the developing struggling. This is mainly attributed to them experiencing an unfavorable imbalance in trade.
World trade has led to entrepreneurship through the implementation of science and technology. For the developing countries to experience growth, they must develop infrastructures, such as transport and communication. These provide the right conditions for investment if they are well developed for the future. Also, injection of aid through multinational corporations can lead to improved growth and rapid growth. Multinational corporations, such as the World Bank and I.M.F, have been donating funds to enable sustained growth through improved science and technology.
Liberalists have also explained that an open economy free from political connections is essential in order to sustain continuous industrialization and the creation of large investments. They mention that free trade and a free-market economy are necessary for emerging into foreign markets. Integration should focus on capital flows and increased networking of economies. International trade has also led to the fact that developing countries have a comparative advantage whereby a country produces products at lower opportunity costs than its competitors. Countries that have experienced success stories include Dubai, Qatar, and Nigeria.