Transnational Corporations and Nation-States
In: International social science journal: ISSJ, Band 47, Heft 151, S. 77-89
ISSN: 0020-8701
Although the nation-state was historically considered as the primary unit of international economic action, some scholars have recently argued that it has lost considerable power & that this loss can be attributed to certain characteristics of transnational corporations (TNCs): (1) assets & sales larger than the gross domestic products of most nation-states, (2) the multilocational nature of TNCs, & (3) the ability to move jobs & resources, thereby undermining the state's regulatory powers. Although these factors have transformed global ecnomic structures, it is argued that international economies are best understood as interactions between nation-states & TNCs, which are locked into a complex process of interdependence & bargaining. The recent emergence of regionally integrated economic blocs highlights the potential for mutually fulfilling relationships between nation-states & TNCs: states ensure a stable & efficient employment sector, while TNCs consolidate diverse resources, production facilities, & employees in a small, integrated region. 2 Photographs, 28 References. Adapted from the source document.