Political and economic processes

It is known that the emergence of a large machine industry leads to a sharp increase in foreign trade relations. The industry needs more and more raw materials, fuel, and capacious commodity markets. Structural shifts taking place in the economies of industrial countries under the influence of technological revolution, specialization and cooperation of industrial production have strengthened the interaction of national economies. The role in the world economy has become particularly important for transnational corporations, which are taking over an increasingly large part of the world market and account for a growing share of commodity exchange flows. Economic theory has always viewed foreign trade as a factor acting against the downward trend of profit rates. By using cheaper labor, raw materials, markets abroad, monopolies reduce production costs and achieve higher profitability of operations. Firms focus their production of goods not only on national and local markets, but also on world markets, carry out mass, large-scale production, reducing costs and permanent capital.