The evolution of multinational corporations and how they affect state sovereignty

The bachelor thesis connects the concept of transnacional corporations with the term sovereignty of states. The thesis questions whether it is possible that states have their sovereignty power still fully preserved or the sovereignty is reduced. The term of sovereignty went through a significant evolution since the term was defined by Jean Bodin, Thomas Hobber or Jean Jacques Rousseau. In the political theory, the last changes were made by a german political philosopher Georg Jellinek who gave a contemporary definition of sovereignty in the 19th century. He defined the juridical order based on the outside and inside sense of power, with the capability of self-limitation of the state itself. Transnacional corporations are the phenomenon of globalization processes, whose number of parent companies and subsidiaries is constantly rising. The size of MNEs is measured by the foreign direct investments and the transnational index. The thesis relates effect of MNEs and theories of international relations to the state sovereignty. From the perspective of the international law there is no other power which could possibly affect the state sovereignty. The other way around from the practical perspective, we may consider a significant effect of MNEs on state sovereignty.