AP Human Geography Quiz
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POLITICAL PATTERNS AND PROCESSES
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Secondary source excerpt (about 95 words): Multinational corporations (MNCs) can challenge state sovereignty by leveraging mobility and investment decisions. When a firm can shift production among countries, it may pressure governments to lower taxes, relax labor rules, or reduce environmental regulations to remain competitive. Even without formal political authority, MNCs influence policy through lobbying and by threatening to relocate jobs and capital. Smaller or developing states may feel these pressures more strongly, as a single large investor can significantly affect employment and revenue.
Which choice best identifies the sovereignty challenge emphasized?
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