This paper aims to discuss the rather amorphous concepts of ‘state sovereignty’ and ‘Globalization’ and how the notion of sovereignty has been diluted over the years by this phenomenon of globalization. To narrow down the analysis this paper will consider the dilution of sovereignty under the light of a primary force of globalization; Transnational Corporations. With the birth of the state, the concept of sovereignty originated. This included both internal and external sovereignty; however, the latter was recognized much later after the end of the ‘Thirty Years War’ and the signing of the Treaty of Westphalia. Internal Sovereignty was defined as the ability to exercise control and authority within the territorial boundaries of the state. While external sovereignty referred to the ability of the state to establish control and authority within its territory without any intervention from other states.
Although the doctrine of globalization gained recognition back in the mid 80’s its still impossible to concretely characterize this phenomenon. It can mean “sharing power,” “interconnectedness,” “interdependence,” “mobility of factors of production.” ("Does Globalization Cause Separatism?"). The definitions vary depending on the context. It may refer to the intensification of social and cultural interconnectedness across the globe ("Does Globalization Cause Separatism?") or to states sharing power with transnational corporations and organizations such as the United Nations and nongovernmental organizations (NGOs) ("Does Globalization Cause Separatism?")
Multinational or Transnational Corporations are large companies with “global strategies, management practices and resources to take advantage of opportunities created by differences i...
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The world is not a large and strange place anymore. The world is a place that is interconnected and intertwined. The world has become from a place that each country and their peoples are separate and isolated to a place that each country and their peoples are part of a global network. Thanks to globalization this is occurring. Globalization is the ‘international integration” or ‘de-bordering’ – “a number of highly disparate observations whose regular common denominator is the determination of a profound transformation of the traditional nation-state” (Von Bogdandy 2). Globalization is connecting different people from different cultures and backgrounds together. More and more corporations are entering new foreign markets to sell their products to the native populations. But at the same time globalization is negatively hurting people and countries. Globalization is hurting workers and small countries. Workers are forced to work for low wages and small countries are being manipulated by large countries. Globalization is having a negative impact on this world and it outweighs any positive it produces.
...ty exclusive of external authorities. Second, in terms of domestic sovereignty, for fairly long time the political structures of states have been following the global trends, from monarchy, to republics, to democratic states most recently. From above we can see that both domestic sovereignty and Westphalian sovereignty are facing challenges all the time, which are not new, but characteristic from time to time. Since sovereignty is the core value of a state, it is reasonable to conclude that nation-state is challenged by globalization but its power is not undermined.
Multinational enterprises date back to the era of merchant-adventurers, when the Dutch East India Company and the Massachusetts Bay Company traversed the world to extract resources and agricultural products from colonies (Gilpin 278-79). While contemporary multinational corporations (MNCs) do not command the armies and territories their colonial counterparts did, they are nevertheless highly influential actors in today’s increasingly globalized world.
“The world is a global village”, is a metaphor that was coined by the Canadian scholar Marshall McLuhan to describe the perceived experience of a smaller world resulting from the effects of modern technology, faster communication and improved transportation, despite geographical boundaries (1). The various processes that have produced this phenomenon can be called globalization. There are many definitions of the term globalization; Delbruck 1993 defined globalization as "a process of denationalization of markets, laws and politics, in the sense of interlacing people and individuals for the sake of common good"(2). Fidler 1996 aptly described globalization as a complex process of, “political and economic intercourse between different sovereign states” on the premise that such interdependence will result in states being better off and as such building stability, peace and order in the international scenario(3). Globalization has resulted in a gradual erosion of the traditional distinction of national and international activities through political, social and economic interaction between different countries, leading to a fusion or overlap of domestic and foreign policies(4). However, globalization differs from internationalization, the latter referring to a process where each country attempts to fulfil their national interest by co-operating with other countries in areas where they are incapable of achieving desired outcomes on their own(3) . Its key points are co-operation between states, while preserving sovereignty. Globalization on the other hand entails co-operation and undermines the sovereignty of nations.
Globalization is a broad concept and the angle taken to define it can lead us to interpret the idea in many different ways. There is much controversy about what globalization actually means and many definitions fail to encompass social, cultural and technological exchanges between world systems. John Pilger suggests that "it is a jargon term which journalists and politicians have made fashionable which is often used in a positive sense to denote a 'Global village' of free trade, hi-tech marvels and all kinds of possibilities that transcend class, historical experience and ideology." (J.Pilger 1998:63). Taking a broader point of view, Bilton et al defines globalization as "The process whereby political, social, economic and cultural relations increasingly take on a global scale, and which has profound consequences for individuals, local experiences and everyday lives."
In recent decades, the process of globalization has accelerated and the world economy has become increasingly interdependent. The rise in the number of businesses that extensively operate in more than one foreign country, which is known as multinational corporations, plays an important role in the ongoing procedure of globalization. The United Nations has reported that multinational corporations hold one-third of world’s productive assets and control 70 percent of world trade (Schermerhorn et al., 2014). As there is a considerable growth in international businesses, worldwide economy is becoming more highly competitive. The global economy not only offers great opportunities for multinational enterprises but also on the other hand, creates many difficulties for them. Therefore, success in the large-scale economy requires a number of elements. One of the major determinants is dependent on global managers. In the operation of organizations, managers may encounter different international management challenges that restrict their business development. These challenges often include issues associated with the host countries, the global workforce diversity management, management across cultures, difficulties in competitive global business environment as well as in the process of global planning and controlling. This essay is going to discuss the above international management challenges in a broad sense and giving illustration in aspects of each challenge.
“The process of globalization and the increasing role of non-state actors in global governance are undermining the role of the state as the principal actor in global policymaking.”
After the cold war, word ‘globalization’ was commonly used at a time of unprecedented interconnectedness when advanced nations experienced a ruthless development by exploiting energy resources and stressing culture forms in developing countries. To identify the definition of ‘globalization’, it is significant to clarify its appearance as well as implication.
Globalization can be defined as the international incorporation which results from the exchange of products, culture, ideas, and worldviews. It may also be defined as the increased flow of people, information, and goods across international boundaries. Increase in transportation and the internet has brought about an increase in globalization. Three different forms of globalization dominate the world which are; economic globalization which is the rise in the economic dependence of national economies all over the world due to a rise in to and fro movement of technology, capital, and service from one country to another, political globalization which is different government sectors using the same method, practice, and ideology, and social globalization which involves the unceasing spread of religious beliefs and ideals, whether by the use of soft means such as persuasion or by the use of force. Some individuals and social groups resist globalization because they belief that globalization would destroy their culture and their natural environment, bring ...
The definition of globalization is, “Globalization is the connection of different parts of the world. Globalization results in the expansion of international cultural, economic, and political activities. As people, ideas, knowledge, and goods move more easily around the globe, the experiences of people around the world become more
Globalization is the connection of different parts of the world. Globalization results in the expansion of international, cultural, economic, and political activities. As people, ideas, knowledge, and goods move easily around the globe, the experiences of people around the world become more similar. (“Definition of Globalization“, n.d., ¶ 1)
Modern society is dominated by multinational corporations. In the past 30 years there has been unprecedented development of transnational corporations (TNC), which is “any corporation that is registered and operates in more than one country at a time” (Transnational). Now, there are more than 63,000 TNCs, while there were only 7,000 in 1970. That is more than 900% growth in TNCs in only a few decades. Even more startling, 70% of all trade, includes at least one of these TNCs (Basic).
... (eds.), Leviathans: Multinational Corporations and the New Global History, New York: Cambridge University Press.