Final answer:
Primary motivations for conducting business globally include accessing new markets, optimizing production for domestic sales, and positioning for advantageous taxation and business environments. Multinational corporations heavily influence the global economy, expanding operations without being constrained by national borders. Concerns about environmental regulations and national security prompt governments to restrict imports and preserve national interests.
Step-by-step explanation:
Companies are increasingly looking beyond their national borders to optimize various facets of their operations. The primary motivations for choosing to do business globally include accessing new markets to sell their products, leveraging global production networks to reduce costs or enhance quality, and strategizing to relocate headquarters for favorable taxation or other business-friendly policies. Moreover, multinational corporations significantly contribute to the global economy by controlling assets, coordinating sales, managing production, and providing employment. They are known to source their capital from multiple countries and operate without strict adherence to national borders.
However, globalization is not without its critics. Environmentalists express concerns over multinational companies potentially bypassing strict environmental regulations by setting up operations in countries with more lenient laws. Politicians may worry about national security implications if a country becomes too reliant on imported goods, such as oil. These worries can prompt governments to implement policies to restrict imports and protect national interests. The complex factors of international trade, such as demand and supply models, must be understood in this context.