Modern Multinationals in an Increasingly Mercantile World: Strategic Insights from Charter Companies

Abstract

In the 21st century, deglobalization, or the unraveling of international economic integration, has become an increasingly prominent topic in the global economy, driven by the 2008 financial crisis, the rise of protectionist political movements, and the disruptions caused by the Covid-19 pandemic. This thesis examines the implications of deglobalization for multinational corporations (MNCs), whose traditional models of global expansion are increasingly undermined by political risk, trade disruptions, and shifting regulatory environments. As modern trade becomes more state driven and volatile, the global economy begins to resemble the mercantilist era of the 16th to 19th centuries, where commerce was shaped by state power and geopolitical rivalry. To explore this emerging parallel, this thesis conducts a comparative case study of two mercantile charter companies, the Muscovy Company and the British East India Company, and one modern MNC, BlackRock.

The aim is to uncover historical patterns of corporate behavior under politically constrained trade regimes and extract strategic lessons for modern firms. Each case is analyzed through the lens of geopolitical struggle, state alignment, and operational adaptability. The study identifies four key strategies that MNCs can adopt from their mercantile predecessors, (1) the containment of operations within politically secure spheres of influence, (2) the alignment of corporate objectives with state interests, (3) the recognition of political volatility as a core operational risk, and (4) adaptability as a strategic utility. This thesis contributes to the literature by addressing a gap in prescriptive guidance for MNCs navigating today’s deglobalizing environment. While the geopolitical landscape has changed since the early modern period, the underlying dynamics of power, trade, and corporate survival remain consistent. As globalization retreats, the strategic insights of mercantile charter companies offer a valuable roadmap for MNCs seeking to thrive in an increasingly protectionist and politically fragmented global economy.