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What is the evidence that multinational/transnational corporations pose a threat to state sovereignty - Essay Example

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Governments, social organisations and regional leaders are increasingly troubled by the growing presence of multinational corporations,…
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What is the evidence that multinational/transnational corporations pose a threat to state sovereignty
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Are these valid concerns from local entities in countries world wide, or is this only the fear of change and the unknown future. It must be accepted that Global companies will influence states in some manner as there must be an interaction through contracts, agreement, trade or taxes. However, before it is possible to adequately evaluate if Multinationals pose a treat to states it may be of value to follow the events leading up to, and which are facilitating Globalization.
The break-up of the Soviet Union ended the Cold War and this resulted in liberalization of many communistic countries, increasing acceleration of globalization. States became part of the global village, which resulted in people and entities questioning the idea of a state being a totally sovereign entity. Sovereignty is the ability of a government to have absolute authority over its own territory. Economic interdependence between states has meant that increasingly what happens somewhere in the world ultimately affects all the countries in the world. Thus, the role of politics has been overtaken by the role of economics.2
At the beginning of the 1990s, James Rosenau, one of the leading theorists of this trend, developed the idea that globalisation and ‘Tran nationalisation’ has led us into a period of global ‘turbulence’. While the state is not about to disappear, it no longer has a free hand and has lost control of events. Rosenau claimed that the inter-states system, once the central pivot of international affairs now coexists with a ‘multi-centred’ system; the determination of foreign policy has largely passed to non-state entities.3
As the world market today is realized ever more completely, it tends to deconstruct the boundaries of the nation-state. Robert Reich, former U.S secretary of labour celebrates the overcoming of national ...Download file to see next pagesRead More
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