In what ways the transnational corporations eroded the sovereignty of the governments?

Most of the problems connected with transnational enterprises stem from their distinctive transnational features in a world that is divided into separate sovereign states. Transnational corporations have developed important capacities which can be put to the service of world development, yet these same capacities can also be used in ways which may conflict with the interests of individual states. While governments may pursue a variety of economic and non-economic objectives to advance the welfare of their citizens, the chief goals of transnational corporations, like those of all business enterprises, are profit and growth. The differing objectives of nation-states and transnational corporations suggest that their respective decisions will not always be in harmony with each other.

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