Are states losing power relative to MNC’s that are organized for production on a global scale?

Although the Bretton Woods system of exchange rates collapsed in the early 1970’s the International organizations created at this summit have had lasting effects on the world economy. Most notably, their effects on the opening and stabilization of international trade have led to exponential growth in interdependence and globalization. One example of this can be found in the proliferation of multi-national corporations (MNC’s). These corporations, which have their headquarters in one state and subsidiaries …

…where they are much needed but at a cost that has yet to be fully seen. These range from the loss of a state power over its monetary system to the balancing act performed by states to lure FDI while keeping their domestic situation stable. The future may see this trend continue and the result could be a revolution in the way world power is distributed and political and economic decisions are made. ------------------------------------------------------------------------ **Bibliography**