SINCE THE EARLY 1900'S, THE GOALS OF GOVERNMENT HAVE CHANGED FROM MILITARY TO ECONOMIC SECURITY, MAINLY BECAUSE THE WEAPONS DEVISED DURING AND AFTER WORLD WAR II HAVE MADE MAJOR WAR UNTHINKABLE. THE MNC OFTEN COMES IN CONFLICT WITH INDIVIDUAL NATIONS BECAUSE IT DEALS IN ECONOMIC GOODS WHICH ARE NOW VIEWED BY THE STATE AS EQUIVALENT TO POLITICAL GOODS. THROUGH THE MNC, A FOREIGN STATE CAN INFLUENCE THE HOST STATE'S SOVEREIGNTY BY APPLICATION OF THE PARENT STATE'S LAWS, AND INTRODUCTION OF FOREIGN TECHNOLOGY, CULTURE, AND IDEOLOGIES. A FOREIGN STATE CAN ALSO MAKE ECONOMIC AND TECHNICAL DECISIONS AFFECTING THE HOST STATE SUCH AS SWITCHING PRODUCTION TO ANOTHER COUNTRY OR SHIFTING LARGE AMOUNTS OF CAPITAL FUNDS. INTERNATIONAL TRADE IN THE FORM OF A MNC CAN AFFECT THE BALANCE OF PAYMENTS BY TRANSFER PRICING AND BY INTERNAL IMPORT AND EXPORT POLICIES. IN ADDITION, MNC'S FREQUENTLY ABUSE FREE TRADE BY FORMING INTERNAL CARTELS, BY INTERNATIONAL RESALE PRICE MAINTENANCE, INTERNATIONAL MERGERS, AND RESTRICTIVE USE OF PATENTS. FURTHER, ALTHOUGH THE MNC CAN BRING DISTINCT ECONOMIC BENEFITS TO POORLY DEVELOPED NATIONS, ITS DECISIONMAKERS TEND TO PLAN FOR SHORTER PERIODS THAN THE STATE. AMERICAN MNC'S ARE REGARDED WITH INCREASING HOSTILITY BY HOST STATES BECAUSE THEY FEAR LOSING CONTROL OVER THEIR ECONOMIC DESTINY. HOWEVER, THERE IS A RISING TIDE OF NON-U.S. MNC'S WHO RIVAL THE PRACTICES OF AMERICAN ONES. THE MOST OBVIOUS EXAMPLE IS OPEC, WHICH WAS FORMED AS A REACTION BY FIVE THIRD WORLD COUNTRIES TO THE UNILATERAL REDUCTION IN THE PRICES PAID FOR OIL BY SEVEN AMERICAN OIL MNC'S. NOW OPEC IS THE MOST POWERFUL CARTEL IN HISTORY CONTROLLING 85 PERCENT OF THE WORLD'S CRUDE OIL.