Beyond the nation-state? The transnational firm and the nation-state

Abstract

This paper analyses the relationship between the transnational firm and the nation-state in capitalist economies. Following a critical appraisal of mainstream and radical theories of the transnational firm and the nation-state we proceed in analysing their relationship within a proposed rivalry and collusion framework. It is suggested that nonantagonistic differences between the two actors lead to potentially rivalrous behaviour, which however incorporates the seeds of collusive arrangements. Transnationals, it is suggested, need the nation-state and vice versa, but also the development of supranational organisations, to facilitate their operations.