The MNC’s Nativity?

The rise of MNCs in the international dynamics, nowadays, has become a very important issue in the international relations and the world is starting to be aware of the threats that the MNCs’ proliferation has brought.

Traditionally, politically significant contact across national boundaries was conducted by government officials, but nowadays the emergence of private MNCs seemed to challenge this state-centric construct with the propagation of MNCs around the globe that are attempting to the nation-state sovereignty.

The MNCs have a great direct impact on domestic production, employment and other important socioeconomic indicators that can complicate the regulatory execution of a national government’s policy. At the same time, the nation-states are exercising less control under conditions of globalization and the MNCs are taking this role.

But some governments aren’t taking actions against the MNCs growth, because these can be seen as helpers to the nations, specially the less powerful ones. The MNCs offer to national governments more options in pursuing their national interest objectives, and also, they are acting as levers in the host nations, particularly in areas related to human rights, labor relations and environment. Simultaneously, the nations are using the MNCs as instruments in government’s foreign policy and they are bringing direct services to the local communities.

In the other hand, the MNCs have difficulties in attempting to the sovereignty, because although the ability of MNCs to respond flexibly to the speed and magnitude of global economic change has increased, but the changes also made it harder to assign individual MNCs the attributes of a distinct political actor over any reasonable period of time. This increasingly changes and the lack of a stable identity in MNC composition and character alter their potential to challenge national government sovereignty.

As conclusion, despite impressive growth in financial, technological, and other resource capabilities, MNCs do not function effectively as independent, unitary actors that can challenge nation-state sovereignty, and the global community gives no sign of providing legitimizing assent to any formal MNC political authority.