International Relation Multinational Corporations

In this lesson we will discuss another type of non-state actor in the international system. Multinational corporations (MNCs), broadly defined, are business entities that have facilities—whether production, administrative, or distribution-related—in two or more different countries. The influence of MNCs in the international system demonstrates how foreign relations and economics are intertwined. MNCs are a relatively recent development, and although they do not have the political sovereignty or military strength possessed by states, they still exert considerable influence over the international system. MNCs also have a mixed reputation in terms of the benefits they provide and the harm they can cause, especially in the poor countries where they often locate production.