Multinationals and the Global Financial System

The two topics of transnational corporations and the global financial system (GFS) are treated separately in the first two chapters of the book. The issues of globalization and international trade as well as the floating foreign exchanges and the global reserve system are also examined here. The globalization and the growing role of powerful multinationals that makes the nation-states powerless demands us to look how the corporate giants should be restructured and operated in the future. The chapter highlights are the concept of a limited ‘corporate sovereignty’ for the qualifying transnational corporations (with no allegiance to any specific country) and an innovative concept of the Virtual Gold Standard (VGS). The VGS consists of a global currency called MONDI as the non-tradable global but virtual single currency, and a fixed ‘currency exchange parity standard’ (CEPS) for the national currencies against MONDI.