Governments need multinational support to run effectively. They are dependent on corporations for their resources and services, eg: providing aid for government initiatives such as the recent Tsunami relief. However, if a country becomes too interdependent and is overpowered by a stronger economy it loses its economic sovereignty and may be forced to set policies that are differing to its citizen's interests or desires. A new system of governance has emerged where policies are based around benefiting governments and multi-national corporations, rather than the citizens.
Regarding trade, pro-globalisation corporations and organisations can lessen a states individual decision making. Large economies of multinational corporations give them the ability to dictate or influence government decisions, for example wheat trade between Australia and Iraq. The WTO has set a system of standard rules for global trade which is a regulatory process controlling what governments can and cannot do in foreign trade.
Because of globalisation, multinational corporations have a political impact on states through political lobbying and election contributions. They have the ability to influence or produce a vote in favour of one party through media campaigns. Politics is also being changed by the ability to organise large-scale, global protests about major issues or events. In 2005, it was claimed that billions around the world watches the Live 8 Concerts, which aimed to put pressure on the G8 countries to provide greater assistance to Africa.