1. The Loss of Sovereignty TNCs and the EU

2. Concepts

Sovereignty The authority of a state which according to international law, is autonomous and not subject to legal control by other states or to the obligation of international law.

3. Nation A large number of people of mainly common descent, language, and history. 4. State -A territorial unit with clearly defined and internationally accepted boundaries, having an independent existence and being responsible for its own legal system. 5. Nation state A nation which is also a state. The two do not always go hand in hand. 6. (Mayhew, S. & Penny, A. (1992) 'The Concise Oxford Dictionary of Geography', Oxford University Press) 7. TNC Any corporation that is registered and operates in more than one country at a time. Generally the corporationhas its headquarters in one country and operates wholly or partially owned subsidiaries in other countries. Its subsidiaries report to the corporations central headquarters. In economic terms, a firms advantages in establishing a multinational corporation include both vertical and horizontal economies of scale (i.e., reductions in cost that result from an expanded level of output and a consolidation of management) and an increased market share. Although cultural barriers can create unpredictable obstacles as companies establish offices and production plants around the world, a firms technical expertise, experienced personnel, and proven strategies usually can be transferred from country to country. Critics of the multinational corporation usually view it as an economic and, often, political means of foreign domination. Developing countries, with a narrow range of exports (often of primary goods) as their economic base, are particularly vulnerable to economic exploitation. Monopolistic practices, human-rights abuses, and disruption of more-traditional means of economic growth are among the risks that face host countries. (Source: Encyclopdia Britannica) 8. 9. TNCs Advantages and Disadvantages

Development of infrastructure

10. Investment and aid 11. Employment 12. Development of primary and secondary sectors 13. Skills and education

Leakage

14. Mechanization may reduce employment 15. Local labor exploited 16. Local resources exported 17. Increased imports, esp. oil, leads to increased national debt 18. 19. Is the Nation-State Dead? 20. EU & Nation-States

Advantages

Disadvantages