MultinationalThreatens State Sovereignty - Essay Example

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MultinationalThreatens State Sovereignty

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.
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 glo ...Show more

Summary

The question if International Corporations poses a threat to State Sovereignty is currently a very hotly debated issue internationally. Governments, social organisations and regional leaders are increasingly troubled by the growing presence of multinational corporations, especially those in poor developing nations…
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MultinationalThreatens State Sovereignty essay example
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