This article found on the BBC site aptly describes the effect globalisation has on politics.

The challenge of globalisation

Whether or not Foreign Policy is any more dead than history, the challenges of globalisation are very real.

It's been estimated that by the mid 1990s, nearly 40,000 multi-national companies accounted for one fifth of the total global economy.

There is a sense that giant corporations such as Microsoft or Shell are beyond the control of any individual state. That feeling of powerlessness in the face of huge multi-national conglomerates helped fuel the violence of anti-globalisation demonstrations around the world, from Seattle to Genoa. The targets of the demonstrators' anger are international organisations like the G8 group of industrialised countries and the World Trade Organisation. Often, on the streets, well-known global retail brands are also hit.

MNCs. Multi National Companies. They are on everywhere. Bilboards, newspapers, airwaves and even your pair of socks. MNCs are here. IN YOUR FACE. Well, only an ignorant is wont to not notice it them. Muahaha. Moving on, multi national companies have sprouted and appeared like bunnies in the heat. Why,they account fo a fifth of the total global economy. Gamer speak: pwnage. And since moolah is almost everything the government wants, and MNCs generate income for the economy, it is almost easy for MNCs to be able to set up shop. In fact, governments like Singapore's are wooing them. They're income generators.

It all seems too good to be true doesn't it? There has to be a catch somewhere.

Well, MNCs are usually private companies. That means they are not tied to any country and they are not bound by any regulations except for those set in the business world and their company. They are able to do anything they want and nations are usually unable to stop them. They generate the nation's income. They provide jobs. They are GIGANTIC multi national corporations. They control the economy and they play by their own rules. This affects the political arena. Concessions will have to be made for the MNCs. Obviously this will affect the citizens who feel neglected by their government. Sure, everything may work out for these monsters but will it always be good for the people? The sovereignty of a nation may be affected by a Microsoft or a Shell as they are unable to stop the private corporation. If they were to impose a ruling on these MNCs, the corporations might just take flight to another country and leave the nation's economy to tatters. MNCs do play politics. Take a look at google. You type a certain vulgarity, you will arrive at a certain Anti-Republican page. I am not going to substantiate on this point. Rarr. Sorry for bringing that up.

On a side note, does money really make the world go round?