It is often argued that it is important for economics theory to have a solid "micro-foundation." In other words, it is necessary to be able to explain how the economy works, in part, by how its individual agents think and act. How then do capitalist firms as described by milberg and winkler in shape the development of the global economy? how do their actions contribute to its growth? its pattern of income distribution (within and across nations)? its stability? how have firm behaviors evolved over time? what is the significance of these transformations?