Transnational corporations already control up to halfof the world’s industrial production, 63% of foreign trade, about 4/5 ofpatents and licenses for new technology and know-how. They control 90% of theworld market for wheat, coffee, corn, timber, tobacco and iron ore, 85% for thecopper and bauxite market, 80% for tea and tin, 75% for bananas, natural rubberand crude oil 6.

This allows influencing substantially the internal andexternal policies of states and successfully avoiding control on their part7. This applies to a certain extent to all international legal entities(established in force or in the presence of an international treaty or otherinternational constituent instruments) 8 entering into international economicrelations. Their importance is growing steadily, evidencing also the tendencyto the unification of interstate interests at the economic-subjective level,which inevitably leads to the emergence of integration processes that promoteregulation of relations between subjects and orientation to private law normsof a universal nature.

We Will Write a Custom Essay Specifically
For You For Only $13.90/page!

order now

Today, the disruption of the interests of the stateand large transnational business is maturing, alienation between them isincreasing. Transnational corporations are interested in ignoring burdensomenational rules. Legislators often develop national norms as ifforgetting about the existence of international relations.The activities of transnational corporations and anumber of international economic organizations testify to the absence of formaldemocratic procedures – regulation is carried out essentially by administrativemethods.

For example, by providing loans, the International Monetary Fund actuallydirectly defines the program of action of the governments of the respectivestates. In general, globalization in many respects blurs theboundaries between the internal and external spheres of economic activity whiletransforming external factors into internal ones.


I'm Erica!

Would you like to get a custom essay? How about receiving a customized one?

Check it out