6 - Firms andglobal capitalism

Summary

This chapter examines the role of business enterprises as actors in the spread of global capitalism since 1848. Since the middle of the nineteenth century, firms have been the strongest institution to operate across national borders, with the possible exception of the Roman Catholic Church. From the mid nineteenth century tens of thousands of firms, mostly based in Western countries which had experienced the industrial revolution, crossed borders and established operations in foreign countries. The global spread of firms rested crucially on the formal and informal institutions put in place during the nineteenth century, and sometimes earlier. The meltdown of the global economy during the interwar years is an important topic in economic history. Global capitalism had flourished within the context of Western colonialism, and became associated with the political and racial injustice of such regimes. After World War II ended, multinational firms made significant contributions to the reconstruction of a global economy.