How have TNCs affected the sovereignty of developing countries in terms of resource extraction and control?
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Transnational corporations (TNCs) have significantly impacted the sovereignty of developing countries concerning resource extraction and control. TNCs often operate in extractive industries, leading to human rights abuses, armed conflicts, and corruption. The power imbalance between TNCs and developing countries is exacerbated by the high profitability of TNCs, the economic dependence of developing nations on the extractive sector, and the lack of regulatory expertise in these countries. This imbalance calls for measures such as recognizing TNCs as subjects of international law and empowering civil society to counterbalance TNC power. The interaction between TNCs and developing countries raises concerns about sovereignty, as TNC actions can undermine national control over resources and lead to social injustices.
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| Papers (4) | Insight |
|---|---|
Open access 01 Apr 2009 13 Citations | TNC activities in extractive industries can impact developing countries' sovereignty through conflicts, corruption, and inequitable resource distribution, raising concerns about human rights abuses and governance responsibilities. |
14 Citations | TNCs impact developing countries' sovereignty by influencing resource taxation policies. Developing nations often rely on ad valorem royalties, contrary to standard tax advice favoring neutral excess profit taxes. |
| Transnational corporations impact developing countries' sovereignty through resource extraction by influencing administrative jurisdiction, human rights abuses, and challenging national sovereignty via corporate citizenship. | |
5 Citations | Transnational corporations (TNCs) have created a power imbalance, impacting developing countries' sovereignty in resource extraction due to economic dependence and regulatory challenges, as discussed in the paper. |
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