Critically assess the changing relationships between TNCs and nation Essay - 1

Critically assess the changing relationships between TNCs and nation states, comparing their respective roles, objectives, flexibility and power - Essay Example In a recent attempt, globalization has been described as â€Å"a process that encompasses the causes, course, and consequences of transnational and trans-cultural integration of human and non-human activities† (Al-Rodhan and Stoudmann, 2006). Information technology (IT) has played a very important role in the globalization of economies across the world. Improvements in information technology from the early 90’s and the growth of disruptive internet technology, computer hardware and software have made it easier for both business enterprises and common people to access information. It has turned the world into a small global village. Improvements in technology have brought down the cost of doing business by all sectors of the economy and contributed in their efficiency gain. Information technology has made it easier for companies to restructure their business practices by modifying their inventory management system and â€Å"just-in-time† production technologies. Nation states have been described as a state which has the basic function of creating a cultural self-identity based on the strength of its national identity. It has been argued that the very creation of the nation state is a type of an invention that signifies a combination of nation and a state. A nation state is connected in terms of its nationality, social and cultural aspects and a strongly organized political system that works in best interest of the nation. The role of the nation state has changed considerably in the era of globalization. In the modern era, the role of the nation state has changed from that of a chief political organization. In the present times they are adapting themselves to become the singular units that can meet the needs of its local people at a time when world economies are integrating strongly. In a research that has been conducted by Zhou (2011) it has been highlighted that sovereignty of nation state has become more complex, conditional and