Influence and political pressure-Multinational investment can be very beneficial to a country and that will also give it a disproportionate influence over the host country's government and other organizations. Despite their economic value, governments will always consent to reforms that may not be advantageous to their people's long-term welfare.
Recent international developments are providing good relief for global lobbying activities. Multinational businesses have vociferously protested the worsening of trade tensions by the Trump Administration, tightening immigration controls and undermining global supply chains. However, intense lobbying does not necessarily correlate with political influence. Though MNC 's attempts to maintain existing trade deals were overwhelmingly rejected by the Trump administration, individual companies successfully lobbied to win tariff exemptions
MNCs have an unintended role as State instruments in foreign
policy. Governments have also used MNCs to promote national
interest by enhancing the impact of sanctions through MNC
Facilitating capital transfers by firms to strengthen monetary policy or enabling MNC 's foreign affiliates to help collect intelligence
Firms privileged position in the view of governments assists political leaders in defining problems, devising policies and prioritizing objectives.the influence of corporations on American foreign relations stems primarily from their ability to shape the external environment from which problems, conflicts, and crises grow, and their ability to define the axiomatic