THE MULTINATIONALS
AS WORLD POWERS
These developments have had major repercussions
on power structures throughout the world. Many modern organizations
are larger and more powerful than nation-states, but, unlike
nation-states, they are often not accountable to anyone but themselves.
For example, research has suggested that the activities of many-multinationals
are highly centralized, their foreign subsidiaries being tightly controlled
through policies, rules, and regulations set by headquarters. The
subsidiaries have to report on a regular basis, and their staff are often
allowed very little influence on key decisions affecting the subsidiary.
Chief executives in foreign countries often become branch managers,