Private actors and companies
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Flip to reveal answersWhat is a multinational corporation (MNC)?
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All 11 Flashcards — Private actors and companies
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Question
What is a multinational corporation (MNC)?
Answer
A private, profit-seeking company that operates in many countries at once — a non-state actor.
Question
What is a private actor?
Answer
An actor owned and run for profit, not by the state — for example a company.
Question
Where does a big company's power come from?
Answer
Economic size, jobs and investment, data and technology, and lobbying governments.
Question
What is lobbying?
Answer
Trying to influence government decisions in a company's favour, often by spending money.
Question
Why is Big Tech a good example?
Answer
The biggest firms earn more than many countries, hold huge data, shape debate and are hard to tax or regulate.
Question
Why are global firms hard to control?
Answer
They operate across borders and can move money and offices between states, so no single state fully controls them.
Question
What is the key limit on company power?
Answer
Companies have no sovereignty — they cannot make law, and states can tax, fine, regulate or ban them.
Question
How can a state discipline a company?
Answer
By taxing, fining or regulating it — e.g. the EU fined Google billions for breaking its rules.
Question
Are companies as powerful as states?
Answer
They match states in economic power but not in legal authority — only states hold sovereignty.
Question
Economic power or authority?
Answer
Companies have economic influence; only states have the authority to make binding law.
Question
Why do states compete for companies?
Answer
For the jobs, investment and taxes big firms bring — which also gives firms bargaining power.
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Full study notes for Private actors and companies
Topic 1.1 hub
Framing global politics
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