How does the global economy influence national governance? 🔊
The global economy influences national governance through interconnected trade relationships, investment flows, and regulatory frameworks. Economic policies are shaped by global trends such as globalization, which necessitates adaptation from national governments. Sudden changes in the global economy, such as recessions or trade wars, compel governments to reassess their policies to maintain competitiveness. Moreover, multinational corporations can exert significant influence over domestic policies, pushing for regulations that align with their economic interests. Thus, national governance must respond to the broader economic landscape while balancing domestic priorities.
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