Sovereignty at Bay from NIEO to MAI This part deals with the changing relationship between transnational corporations (TNCs) and the State. Transnational corporations are "the primary 'movers and shapers' of the global economy. "It has been the rise of the TNC - especially of the massive global corporation - which is seen to pose the major threat to the autonomy of the nation-state." (Dicken).

This relationship has undergone a dramatic change during the last 25 years. In the early 1970s, the forces that tried to bring TNCs under the control of governments were strongest. A "U.N. Code of Conduct" for transnational corporations seemed within reach. With the further internationalisation of the economy, these forces declined. If the presently discussed "Multilateral Agreement on Investment" (MAI) is accepted, governments would officially renounce any effort to control foreign corporations. The present module consists of three parts. The first put the rise of the discussion on TNCs into the framework of the NIEO debate. The second describes the growth and expansion of TNCs. The third presents the discussion that actually goes on on the MAI.