Multinational Corporations (MNCs) and Global Governance in the Age of Globalization: Challenges and Opportunities – Reshaping Power Dynamics

Abstract

This study critically examines the evolving role of multinational corporations (MNCs) in the global political economy, challenging traditional state-centric views of sovereignty and governance. It argues that globalization has elevated MNCs from mere economic actors to influential political agents, capable of reshaping regulatory landscapes, public policy, and even
democratic processes. Drawing on comparative case studies — including Meta’s impact on political discourse, Glencore’s extractive practices in the Democratic Republic of Congo, and Chinese state-owned enterprises’ vaccine diplomacy — the analysis demonstrates that corporate power is highly context-dependent. While firms such as Glencore often exploit weak governance structures in the Global South, Chinese enterprises illustrate how MNCs may reinforce, rather than erode, state sovereignty when harnessed as instruments of geopolitical strategy. The findings underscore a dual dynamic: MNCs simultaneously erode state authority by exploiting regulatory
gaps and extend sovereign power when aligned with strong states. This ambivalent role complicates the “erosion thesis” of globalization, revealing instead a fluid interplay between corporate and state interests. Ultimately, the article calls for adaptive governance frameworks that balance corporate power with accountability, reimagining sovereignty as a flexible principle
embedded within an interconnected and asymmetrical global order.