Megacorpstate

Megacorpstate is a form of market structure that designs new strategies to systematize the cartel power in the world. This particular market framework consists of oligopolistic interdependent nations-states and multinational corporations, which have established alliance to own majority of the market power. The most prominent organizations within the structure are OPEC and the Seven Sisters that include Exxon, Mobil, Socal, Royal Dutch-Shell, BP, Texaco and Gulf. Regardless of its great influence, Megacorpstate does not have a major recognition in the world. The main reason for its unfamiliarity is its disinclination to characterize itself as a separate market structure.

Alfred Eichner, creative theorist, Keynesian economist and Rutgers University economics professor introduced the term the "megacorp" in his book "The Megacorp and Oligopoly" (1976). The term was initially used to describe the powerful and expansive corporate groups that held monopolistic power over multiple markets. Like many intellectuals who studied Eichner's work, J.Barkley Rosser. Jr, endeavoured to expand the ideas and research on megacorporations. He recognized a strong alliance present between the monopolistically powerful multinational oil corporation groups and nation states. As a result of such interlocking relationships and trade, these participants formed a rather rare market structure. After careful analysis and consideration, Rosser decided on labeling the new formed market, "Megacorpstate".

Stephen Hymer, influential Canadian economist, also researched on the activities relating to multinational corporate firms and their growth. Through his research, he deduced the growth factors and processes by which small firms evolved into giant multinational organizations. By taking small United States firms into consideration, Hymer explained the stages a company passed in order to reach hierarchy in the market. Stephen Hymer observed the historical pattern of those U.S firms which, developed from small workshops to factories to national organizations. Soon after they transformed into national organizations, they strived to become multidivisional and later multinational corporations. Upon achieving dominance in the market as multinational megacorporations, they formed alliance and partnerships with similar or superior status giant corporations to enter the new formed market of Megacorporstate.

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