Economic-Political Power and the Role of Global Corporation in Modern World

Radomir Z. Stojkovic, Zivojin B. Prokopovic and Mihajlo S. Raicevic

Ekonomika, Journal for Economic Theory and Practice and Social Issues, 2013, vol. 59, issue 2

Abstract: The paper presents the role of global corporations in the modern economic - political world. Without getting into the legal form of organization of international companies on the role of institutions in creating a new, global world. Global corporations have entered into all sectors of the economy, especially in those that are technologically and financially cost-effective, such as the software industry, pharmaceutical, oil and petrochemical industries, banking and the all financial service sector. Due to the increasingly oligopolistic and even monopolistic positions in certain markets, global corporations are the target of economic analysts, thus creating a somewhat distorted picture of reality. Since their business is based on very scattered but dependent coordinated structure of branches and most of all a huge capital sometimes, consciously or not, violates the basic laws of economy. Global corporations are the creators of global changes and as such have a great influence on the adoption of economic, political and other decisions of sovereign states. In order to safeguard its position in the market sometimes ignores national laws and violate the basic rules of business, by offering bribes to civil servants and officials. Establishing communication with the countries in which they are present, with global institutions, political parties deliberately developed a new form of nonstate diplomacy. Corporate diplomacy as a product of global corporate activity is increasingly gaining in importance and becomes a subject of research and study.

Keywords: Political; Economy (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:ags:sereko:288800

DOI: 10.22004/ag.econ.288800

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