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RECAPITULATION

1 December, 2015 - 14:34

This chapter dealt with the first part of the MNC-nation-state interaction system: the corporation. The main objective was to provide an adequate answer to the following question: "What is an MNC and what role does it play in humanity's struggle for survival?"

To answer the first part of the question, the chapter reviewed the literature with respect to the definition of the term MNC, the size of the MNCs around the world, their decisions to invest, and the number of affiliates MNCs maintain around the globe.

The lists of the largest MNCs in the world and in the United States provided evidence that the MNC represents a rather substantial part of human life. These large, diversified, complex, and extremely efficient corporations use a very large portion of the earth's resources, provide employment for millions of people, supply economic resources to hundreds of governments, and, of course, yield profits and dividends to millions of investors all over the globe.

To answer the second portion of the question, the chapter examined the very complex issue of the match between the objectives of a nation-state and the goals of an MNC. In general, it appears that neither the nation-state nor the MNC is at bay. The likelihood that nation-states would be better off if they eradicated the MNC via nationalizations or confiscations is very small. By the same token, the probability that the MNC would be more profitable and would better serve the interests of its stockholders if it could eliminate the functions of the sovereign government of a nation-state is also close to zero.

This hypothesis requires no testing. The literature of the sixties and seventies is replete with examples of attempts by both MNCs and nation-states to eradicate each other. There are no success stories. Rather, what we do find is allegations of MNC misconduct without any conclusive evidence of results benefiting the corporation. On the other side are various nation-states' attempts to take over "what is justly ours" –nationalizations of MNC property—only to discover that the resurrection is much harder than the birth. Millions of jobs evaporated and billions of tax revenues were unnecessarily forfeited. If the goals of world stability, prosperity, and survival are to be realized, the MNC-nation-state interaction must be a non-zero-sum game: a win-win situation.