A future foretold? Multinational firms and leading sector development—Past, present, and future [Paper presentation]

Abstract

The rise of awareness in globalization processes has led to a renewed focus on leading sectors and thus the interaction between states and multinational firms that helps foster them. Previously viewed as “national agents” of state power, multinationals are increasingly perceived not only as independent actors, but indeed as chipping away at the power of states to control the economic activity of their national markets. However, the symbiosis between states and multinational firms has a deep and rich history, which is important to keep in mind for the analysis of the current and future development of state-MNC interaction. Prior to the industrialization phase in world history, states often “outsourced sovereignty” to multinational firms in exchange for a share in the profits, focusing more on the establishment of legal frameworks and the protection of trade. With the return to an external network-centric global system, it is more likely to also see a return of a similar relationship between states and multinational firms.

Joachim K. Rennstich

Professor International Social Work and Research Methods

My research interests include the long-term development of digital capitalism, digital literacy and innovative teaching-methodologies.