Threats To Government Sovereignty

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Threats To Government Sovereignty

All corporations are.

That is the real, important and almost completely neglected point we have seen that the modern large corporation needs a great many things from the government, and gets them.

In getting them, it invades the sovereignty of the government.

The large national corporation makes just as heavy an assault on national sovereignty as the large multinational firth does.

The large American firm accommodates Washington to its needs.

The large French firm persuades the French government in the same way.

And soft is in Britain, Germany, Sweden or wherever.

The multinational corporation, when it comes into a country, also persuades the host government as to its needs.

It may establish a lobby, work on legislators, and influence public opinion.

Only because it is a foreign corporation does this look more serious than the similar invasion of sovereignty by a national corporation.

We doubt that it is ever more serious; on occasion it may be more tactful and cautious.

When we were a youngster in Canada, to cite our favourite example, it was assumed that the Canadian Pacific Railway, then a very large and powerful organization, would get what it wanted from Ottawa.

Its dignity required that it instruct, not ask.

We can tell you that our neighbours who were farmers didn't much like the freight rates that this invasion of sovereignty produced.

We very much doubt that General Motors, General Electric, Ford, and Du Pont, as they operate in Canada, have ever been so ruthless.

But, being multinationals, their power is much more celebrated.

Even given the great sophistication of the French people, we wonder if it isn't easier to get attention for the intrusions of the Ford Motor Company on French culture and sovereignty than for those of Citroen or Peugeot.

Learn More About A Wage-limitation Policy

Incentives To Multinationalism

Oil isn't a manufactured product; it comes from the ground. Of course there are other incentives to multinationalism. As we said earlier, the large corporation reaches back to get control of its raw materials, something which takes it into other countries. This is the case with the oil companies. And there is also empire building. When a management has exhausted the market possibilities of Holland or Belgium or Luxembourg, it begins, naturally, to look abroad. Who wants to be big in Luxembourg when he can be big in the world? Even Americans are susceptible, self-effacing and honest though we are.... see: Incentives To Multinationalism

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