The relationship between firms and gvoernmetns

The globalisation and the financial market have changed the relationship between firms and governments. Around a century ago, governments had dominated firms that they had a lot of control over companies and firms were much less powerful. This was caused by the financial market was not as complete as the current one. Firms were not able to compete their financial positions with any governments; moreover, firms were not able to move around the world and in different countries, their risks were much higher, as the information at the time was very limited. However, currently many companies have become more and more important. The financial system and the improved management strategies have allowed firms to operate around the world with much more powerful financial support from the financial market. However, due to the current global network, governemnts start to gain more control over multinational governments. Moreover, the increasing public debts have also weakened the government power, as many governments have been seeking help from the international financial market and the international financial institutions. Although since centuries ago, governments have already started borrowing from banks and merchants, at the time the governments can use laws and even military power to default their debts, currently such strategy is no longer an option. Moreover, governments also depend on many of these multinational companies to bring business and economic opportunities into their countries and these companies can also improve the employment rate in their countries.
Overall the relationship between firms and governments is not so equal when it comes to multinational companies.