Transnational corporations may occasionally actively promote subversive political intervention in the domestic affairs of host, particularly developing, countries. Such intervention is incompatible with the long-term existence of transnational corporations in host countries and infringes upon national sovereignty. Regional political influence, if not intervention, may also be attained by foreign investors, and this may be facilitated by the assistance and incentives given to transnational corporations by colonial governments, either by increasing the number of transnationals or by strengthening them directly and indirectly.
The classic cases of foreign corporate control of governments were the so-called 'banana republics' of Latin America.