NTCs Flashcards
What are TNCs?
ALl companies that imort or export are engaging in transnational activities. Transnational political actors and Transnational corporations are different, as corporations must have subsidaries outside their home state.
How do states and corporations depend on each other?
TNCs depend on the states they reside in for property, the employment of their citizens and taxes.
Why and TNCs so powerful?
TNCs are important political actors in areas such as trade. Following WWII, states relied on capitalisation during an era of an increased financialized market. Now, the most powerful law is not that of sovereignty but of supply and demand.
What challanges does this present to the sovereignty of the state?
Tax havens and offshore accounts ensure wealthy companies can avoid heavy taxes. This is estimated to have resulted in $50 billion USD of loss. Big offices also move to countries famous for low taxes such as Singapore and Switzerland.
