Their goal is to maximise profit, continuously invent, labour to remain cheap and achieve market dominance. Multinational corporations have colossal influence in the international system exerting both economic and political influence. Evidently, multinational corporations gain much of their power from their capacity to operate, coordinate, and manage transactions between states. Accordingly, we must comprehend the effect multinational corporations have on foreign affairs and how they take advantage of changing political situations. Despite of this, multinational corporations subsist because they efficiently allot inadequate material such as coal and oil. Kogut and Kulatilaka recognize this as a functioning double-edged organisation. For example, Zambia, one of the poorest countries in the world, is losing money that could aid the country, due to transfer pricing when the multinational mining company Glencore shifts their profit and dodges taxes. Around three billion dollars is lost because of tax evasion and tax avoidance by multinationals. On the other hand, states are more powerful because they alone possess military power, with the addition of creating and enforcing laws. Proof of this comes from the example of China tightly controlling corporations and their activities, demonstrating that it is still possible for states to be more powerful. Hence, multinational corporations must continue to lobby governments to get their laws through, which ultimately means power lies in the
Their goal is to maximise profit, continuously invent, labour to remain cheap and achieve market dominance. Multinational corporations have colossal influence in the international system exerting both economic and political influence. Evidently, multinational corporations gain much of their power from their capacity to operate, coordinate, and manage transactions between states. Accordingly, we must comprehend the effect multinational corporations have on foreign affairs and how they take advantage of changing political situations. Despite of this, multinational corporations subsist because they efficiently allot inadequate material such as coal and oil. Kogut and Kulatilaka recognize this as a functioning double-edged organisation. For example, Zambia, one of the poorest countries in the world, is losing money that could aid the country, due to transfer pricing when the multinational mining company Glencore shifts their profit and dodges taxes. Around three billion dollars is lost because of tax evasion and tax avoidance by multinationals. On the other hand, states are more powerful because they alone possess military power, with the addition of creating and enforcing laws. Proof of this comes from the example of China tightly controlling corporations and their activities, demonstrating that it is still possible for states to be more powerful. Hence, multinational corporations must continue to lobby governments to get their laws through, which ultimately means power lies in the