Reeling in the transnationals: Governments do have the machinery to influence transnationais' behaviour

This paper has argued that TNCshave gained more control over national govemments recently. Traditionally, the small number of large TNCs enabled them to maintain a highly coordinated bargaining and lobbying structure Today, the multinationality of a firm does not necessarily condate with size. Small and medium sized companies enter foreign markets with foreign directinvestmentat an inaeasing rate. Yet, the growing number of TNCs among such smaller companiesnot only creates additional pressure for govemments in terms of quantity, but also in terms of resouces and decision making capaaty. However, government control over economic affairs need not ultimately be replaced
by the operation of TNCs. Although the impact of their policies on crucial assetshas necessarily diminished, individual governments do have fields of increasing power to influence and regulate TNC behaviour