Internationalization
Introduction
Productive internationalization is the process of international expansion of capital "Capital (economy)"). It is the result of the fundamental characteristic of capital, its tendency to expand or reproduce to obtain more capital. Productive internationalization is carried out with the decomposition and international dissemination of production processes, the work of large transnational companies, or in other words the division in different countries of a company's production processes to reduce costs, gain market share, have better supplies or better state policies in favor of transnational companies.
This process has had and has a great impact on the world economy and has been the one that has managed to structure said economy through the fragmentation of production chains, as we currently know it.[1].
Origins
We can frame internationalization in that part of the history of humanity and in our case in economic history, which does not have a clear and simple origin, nor a specific date on which it can be said that it is its beginning. Its origin can be specified, in the most approximate way, in the second half of the century.
When the large companies of the industrialized countries set out to control the deposits of raw materials, existing in other countries, of which they were clients. In this way they became owners of their own raw material deposits and thus reduced costs. Thanks to this fact, industrialization began, the phenomenon that revolutionized the world economy. This primitive model of productive internationalization was very simple since companies only internationalized to obtain raw materials at a lower cost. Later, companies moved their production to foreign countries to gain access to foreign markets without having to go through tariffs or protectionist measures that prevented them from maintaining fluid commercial relations with that market.
A great cause of the proliferation of productive internationalization was the creation of corporations that had a large amount of liquid capital and needed to invest to convert that liquidity into an increase in production or, in other words, following the condition of existence of capital, to reproduce. And perhaps seeing that these new corporations were very profitable, small investors also began to put their savings into the stock market, but these companies soon saw a wall in their investments and it was the lack of demand and excess liquidity since they could not find places to invest this disproportionate amount of money they had. In this way and thanks to these causes, in 1929 the biggest stock market disaster in history occurred, the crash of 1929.