Transnational Corporations as Global Political Actors: A Literature Review
| Author | Anders Uhlin |
| Published date | 01 March 1988 |
| Date | 01 March 1988 |
| DOI | http://doi.org/10.1177/001083678802300208 |
| Subject Matter | Articles |
Research Note
Transnational Corporations as Global Political Actors:
A
Literature Review
ANDERS UHLIN
Uhlin, A. Transnational Corporations as Global Political Actors: A Literature Review.
Cooperation and Conflict, XXIII
,
1988, 231-247.
The primary aim of this research note is to present an inventory of propositions and
findings concerning TNCs as global political actors. As a framework for this analysis
I will classify the literature into three main groups and some subgroups. The three
main theoretical schools compared are liberal theory, mercantilist theory and theories
of imperialism. Several aspects of the autonomy and power of TNCs, as proponents
of different theoretical schools see it, are analysed. The domain and scope of TNC
power are discussed and several power bases are listed. Constraints that prevent the
potential power of TNCs from being implemented are discussed and TNC instruments
for exercising power are listed as well. The scope of the theoretical perspectives used
to study TNCs varies. There is need for a synthesis between the actor-oriented liberal
approaches and the structural and system-oriented theories of imperialism.
1. INTRODUCTION*
whole. Others see them mainly as instru-
Transnational Corporations (TNCs) are
ments of state.
not a new phenomenon in world politics,
The primary aim of this study is to
but in the last decades they have become
present an inventory of propositions and
more important and more widespread
findings concerning TNCs as global pol-
globally As one of the main non-state
itical actors. In doing so, I shall con-
actors in international politics, the TNCs
centrate on similarities and differences
and their activities have become an
between prominent theoretical perspec-
increasingly important field of research
tives used to study TNCs. I also think
for political scientists. Their dual charac-
there is a need to compile an extensive
ter as economic and political actors pre-
bibliography in the field of TNCs as global
sents a theoretical challenge.
political actors.
Several theoretical approaches in the
To be an actor in the global political
field of international political economy
system, the TNC should possess certain
have been used to study TNCs. Pro-
qualities, including relative autonomy in
ponents of different theoretical perspec-
relation to other global actors and power
tives disagree as to what extent TNCs
over other global actors (cf. Goldmann
should be viewed as global political actors.
1978:141). Thus I shall try to analyse the
Some see them as autonomous actors with
autonomy and power of TNCs, referring
considerable power over both nation
to earlier research and comparing dif-
states and the international system as a
ferent theoretical approaches.
232
First, the central concepts have to be
approaches in the field of international
defined. There are several different terms
political economy used to study TNCs, I
connoting approximately the same as
shall go on to discuss the autonomy and
&dquo;TNC&dquo;.2 &dquo;Multinational corporation&dquo; is
power of TNCs, as proponents of the dif-
often used in the literature. I prefer the
ferent theoretical approaches see it.
concept &dquo;transnational&dquo; because it is more
descriptive of the concept of a foreign
firm
2.
based in
THEORETICAL APPROACHES
one country with operating
TO
branches and subsidiaries
INTERNATIONAL POLITICAL
in a number of
ECONOMY
foreign countries. &dquo;Multinational&dquo; sug-
gests a higher degree of international con-
A
diversity of foci and value assumptions
tent and control than is justified. &dquo;TNC&dquo; is
characterizes the vast body of literature
also the term used by the United Nations
about TNCs. To analyse the main theor-
(e.g. Committee for Economic Devel-
etical schools in international political
opment 1981, UNCTC 1985).
economy is complicated, as they are not
&dquo;TNC&dquo; is often defined as a network
logically developed. The theories must be
of enterprises that controls activities and
traced back to the history of ideologies
assets in more than one state (e.g. Adler-
and trade doctrines.
Karlsson 1975:5, Knudsen
._
1979:210,
Classifying theoretical perspectives
Modelski 1979:2). This is a very broad
obviously involves considerable over-
definition, including anything from Gen-
simplification. Many studies straddle cat-
eral Motors to a small firm selling fish on
egories or do not seem to fit readily into
both sides of the border between Norway
any one of them. However, the primary
and Sweden. To make the definition less
aim of this
,
study is not to place scholars
’
broad, some argue that a TNC should
in different theoretical schools, but to
have
&dquo;
majority-owned subsidiaries in at
present an inventory of propositions and
least a defined number of countries
findings concerning the autonomy and
(Knudsen 1979:211), but I shall not use
power of TNCs. The classification pro-
such a quantitative definition here. How-
vides a framework for this analysis.
ever, most of the literature, including this
The theoretical perspectives may be
article, deals with the very big, mainly
classified according to different criteria,
US-based, corporations.3 Most TNCs are
such as their normative attitude; the pri-
based in the OECD countries,’ but it is
mary unit of analysis; or assumptions con-
interesting to note that there are also
cerning the nature of the economic and
TNCs from socialist and developing
political framework in which TNCs act.
countries.
5
Three main groups of theories, relevant
Nation states are normally regarded as
to the studies of TNCs, can be recognized:
the main actors in the global political
liberal theory, mercantilist theory and
system. Therefore, I shall concentrate on
theories of imperialism. 6
the relations between TNCs and states.
The state can be a home country (i.e. the
Liberal theory stresses the benefits of
country from which the corporation and
TNCs. Economic relations are seen as
its main owners originate and where the
mainly harmonious. Liberals take the
corporation headquarters are based), or
point of view of TNCs, both analytically
a host country (i.e. a country where the
and normatively. Three different liberal
corporation’s direct investments outside
approaches can be identified.
the home country take place).
First, there is the business school per-
After presenting the main theoretical
spective’ which focuses on the TNC it-
233
self, its organization, management and
Marxist and Leninist theories have been
strategy. The emphasis is on economic
updated and applied to the activities
efficiency. The relations between TNCs
of TNCs. The neomarxist perspective’2
and nation states are not dealt with in this
stresses the exploitation by TNCs. The
tradition.
main units of analysis are classes. The
Secondly, there is the traditional liberal
research in this category is concentrated
perspective, 8 based on economic theory.
on the influence of TNCs on the govern-
The works in this category devote some-
ments in the dominant home countries.
what more attention to the domestic and
The neomarxist perspective is an attack
international effects of TNCs. Those
on the capitalist system in general and on
effects are assumed to be mostly positive
TNCs in particular.
both for home and host countries. In this
The dependency (or dependencia)
kind of study the focus is mostly on devel-
schoo113 builds on Marxist theories in
oped countries.9
9
some aspects. Like the Marxists, the
The third liberal approach will be called dependency theorists focus on the process
sovereignty-at-bay.l &dquo; Advocates of this
of production and its dynamic structure.
perspective share the mostly positive view
But when the Marxists study processes
of TNCs with other liberals. But whereas
inside the metropolis from a class per-
the business school and the traditional
spective, the dependentistas apply a holis-
liberals highlight economic aspects, pro-
tic view of the world capitalist system and
ponents of the sovereignty-at-bay per-
focus on underdevelopment effects in the
spective also stress the political impact
periphery.
on TNCs. TNCs are seen as autonomous
The dependency school has been a
actors which restrict the power of states.
source of inspiration for some structural
theories of imperialism.14 They focus on
Neomercantilist theory 11 focuses on nation
structural relations between centre and
states. According to this perspective, the
periphery nations (and the centre and per-
role TNCs can play in international poli-
iphery inside each nation). TNCs are seen
tics is determined by the international
as an important part of this structure.
structure of power. The autonomy of
TNCs is dependent on state politics. Nor-
3. THE POWER
AND
AUTONOMY
matively, proponents of this perspective
tend
OF TNCs
to take the point of view of home
countries. The negative effects of TNCs
I shall not overload this short article with a
on home countries are stressed.
long discussion about different definitions
of power. As a point of departure I shall
Theories of imperialism may be traced
take Goldmann’s definition: &dquo;A has power
back to conservative writers like Disraeli
over B: If A
wants B to do x, B will do x&dquo;
and Kipling, and liberals like Hobson and
(Goldmann 1979:13). The main advan-
Angell (Deutsch 1974:17-18). However,
tage of this definition is that it includes
modern theories of imperialism stem from
potential power. A does not have to actu-
the writings of Lenin, Bauer,...
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