countries still rule the world, wolf

Question 1

what is the critic’s argument?

Answer 1

• Critics of globalization claim corporations are more powerful than governments.
• This view is supported by a claim that 51 of the world’s largest economies are corporations, based on sales figures.

Question 2

what are the flawed calculations for the idea that corporations are ruling the world?

Answer 2

• The critics’ comparisons use inconsistent metrics: corporate sales vs. national GDP.
• GDP measures value added, not sales. Comparing corporate sales to GDP leads to double- and triple-counting errors.
• Properly measured using value added, corporations are significantly smaller than nations

Question 3

what are the conceptual differences between states and corporations?

Answer 3

• States:
  
  • Exercise coercive control over people and territory (e.g., taxation, military service).
• Corporations:
  
  • Operate via competition and market reliance.
  • Depend on state-enforced property rights and cannot rely on coercion.

Question 4

what can we say about the economic power of corporations?

Answer 4

• Corporate power is limited and fluctuates due to market competition.
• Companies fail far more frequently than states (e.g., turnover in Fortune’s top 50 list from 1980 to 2000).
• Market concentration has generally declined in sectors like telecommunications.