Transnational companies and their impact on the state economic policy

Abstract

The study is devoted to the analysis of the impact of global and regional economic organizations and large transnational companies on the policy and the condition of the state and its citizens. Transnational companies are becoming the dominant players in the international arena. These economic actors are putting ever-increasing demands to the state, they are forcing the implementation of solutions favourable to themselves, and they are taking over some of the state functions. Because of the transnational and often even intercontinental range of their activities, there is no comparable economic power. The power transforms into political and socio-cultural influence. International economic organizations are limiting the sovereignty of the state, especially in those areas where government policy comes into conflict with the interests of capital. The growing impact of the international capital can provide both opportunities as well as challenges and threats to the functioning of the state and its security.