The multinational corporation: a study in the political economy of power Neil Gordon McDonald Renwick

Abstract

This study focuses on the question of how far multinational corporations lie beyond the regulatory control of nation-states. In what sense are these corporations autonomous organisations whose rules Ana practice exist independent of State control? This is a political rather than economic question, for concepts such as power, control or independence are fundamentally political in nature,. The thesis analyses four leading interpretations or the multinationals and their relations with States, the actual characteristics of both 'actors' and the role of oil multinationals in the international oil industry in relation to 'host' and 'home' governments. Much of the debate over multinationals centres upon their unique character. Organised on the basis of productive capital in a number of countries, that is, subsidiaries linked to centralised managerial; technical and financial resources, it is argued that these companies exercise global flexibility with which the States tied to their borders- cannot compete. 'Global Reach' is therefore claimed to allow multinationals to ignore national regulations and interests. This analysis, however, suggests that the multinational-State relationship takes place within the framework of national regulations and international supervisory bodies that effectively form the 'rules' for the multinationals and the boundaries for bargaining. The multinational forms an important and integral part of the prevailing system that is largely reflective of State-interests, rather than a major challenge to the authority of the States,