ABSTRACT
INTRODUCTION Globalization challenges national political sovereignty as growing economic interdependence ties national political fortunes to developments and decisions taken outside a nation’s territory. When trade comprised most of world commerce, governments viewed foreign business as an external influence subject to customs controls at the border. The rise of multinational enterprises (MNEs) in the postWorld War II era introduced a new actor on the international political stage. Utilizing foreign direct investment (FDI), MNEs established locally incorporated but foreigncontrolled entities inside numerous economies, simultaneously taking on multiple national citizenships. These foreign subsidiaries penetrated more deeply and exerted greater influence on national economic processes than traditional export/import transactions. Controversy ensued over how MNEs should interact with national political authorities and their resulting impact on local societies.
