Open Access BASE1969

The Multinational Corporation as a Challenge to the Nation-State: A Need to Coordinate National Competition Policies

Abstract

The recent growth and development of the multinational corporation presents the international community with a unique challenge. For the first time man has an instrument which enables him to use the world's resources with maximum efficiency. He is no longer restricted by national boundaries, but is able to allocate resources on a world wide basis. In addition, the multinational enterprise provides a means for linking the developing countries to an international productive scheme. These countries are now able to undertake production of goods in which they have a comparative advantage and more rapidly increase their rate of economic development.Since the multinational enterprise trains the manpower of nations, develops their resources, and permits a cross fertilization of ideas and cultures, it may also be an important element in reconciling the diverse peoples of the world. Indeed, some observers believe that the multinational corporation will be more than merely an instrument for production; it will be "a stabilizer in a world full of tensions,"' and provide "a means of unifying and reconciling the aspirations of mankind . " The internationalization of the activities of the modern corporation is, however, challenging the legal and political monopoly of the nation state.

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