How do transnational corporations challenge state sovereignty?

Expert Solution

Transnational corporations share many qualities with multinational corporations, with the subtle difference being that multinational corporations consist of a centralized management structure, whereas transnational corporations generally are decentralized, with many bases in various countries where the corporation .

Clearly, MNCs gain much of their power from their ability to efficiently operate, coordinate, and manage transactions between states Corporations not only have the political power to influence states, but also the economic clout to devastatingly affect a state's economy should the state try to oppose a MNC.

Sovereignty expresses some core ideas of political modernity including the fundamentally important notion of political independence. It was originally an institution of escape from rule by outsiders and to this day it remains a legal barrier to foreign interference in the jurisdiction of states.

Rahul Sunny answered 1 year ago

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