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

Concentration should be placed on gathering reliable facts that are backed up by more than one source. It is to be hoped that after creating a picture of the market, managements analysis of the potential business venture and plan of action will be structured as to avoid losses and to find the most profitable scenarios. The success of the multinational corporation lies on the shoulders of its management. Henry Mintzenberg says every CEO has three essential duties: direct supervision, development of the organizations strategy, and management of the organizations boundary conditions.

Top managements responsibility at and beyond the organizations boundaries is largely a communication responsibility; however, no commonly accepted model exists for decision, execution, and assessment of communication opportunities. [Fowler, 1995] There are many factors that affect the Companys business and the results of its operations, some of which are beyond the control of the Company. The following is a description of some of the important factors that may cause the actual results of the Companys operations in future periods to differ materially from those currently expected or desired.

Any general economic, business or industry conditions that cause customers or potential customers to reduce or delay their investments in the jeans industry could have a negative effect on the Companys strength and profitability. For example, a softening of demand for jeans ware may result in decreased revenues (or at least declining revenue growth rates) for jeans manufacturers in general and the Company in particular and may result in pricing pressures for products that the Company sells. Similarly, the discussion leading to the multination or transnational corporations posing as a threat to the state’s sovereignty stems from the fact that no matter whichever country we might talk about, one