Sphere of influence
In the field of international relations, a sphere of influence is a spatial region or concept division over which a state or organization has a level of cultural, economic, military, or political exclusivity.
For other uses, see Sphere of influence (disambiguation).
While there may be a formal alliance or other treaty obligations between the influenced and influencer, such formal arrangements are not necessary and the influence can often be more of an example of soft power. Similarly, a formal alliance does not necessarily mean that one country lies within another's sphere of influence. High levels of exclusivity have historically been associated with higher levels of conflict.
In more extreme cases, a country within the "sphere of influence" of another may become a subsidiary of that state and serve in effect as a satellite state or de facto colony. This was the case with the Soviet Union and its Eastern Bloc after World War II. The system of spheres of influence by which powerful nations intervene in the affairs of others continues to the present. It is often analyzed in terms of superpowers, great powers, and/or middle powers.
Sometimes portions of a single country can fall into two distinct spheres of influence. In the 19th century, the buffer states of Iran and Thailand, lying between the empires of Britain, France and Russia, were divided between the spheres of influence of those three international powers. Likewise, after World War II, Germany was divided into four occupation zones, three of which later consolidated into West Germany and the remaining one became East Germany, the former a member of NATO and the latter a member of the Warsaw Pact.
Corporations[edit]
In corporate terms, the sphere of influence of a business, organization, or group can show its power and influence in the decisions of other businesses/organizations/groups. The influence shows in several ways, such as in size, frequency of visits, etc. In most cases, a company described as "bigger" has a larger sphere of influence.
For example, the software company Microsoft has a large sphere of influence in the market of operating systems; any entity wishing to sell a software product may weigh up compatibility with Microsoft's products as part of a marketing plan. In another example, retailers wishing to make the most profits must ensure they open their stores in the correct location. This is also true for shopping centers that, to reap the most profits, must be able to attract customers to their vicinity.
There is no defined scale measuring such spheres of influence. However, one can evaluate the spheres of influence of two shopping centers by seeing how far people are prepared to travel to each shopping center, how much time they spend in its vicinity, how often they visit, the order of goods available, etc.
Corporations have significant influence on the regulations and regulators that monitor them. During the Gilded Age in the United States, corruption was rampant as business leaders spent significant amounts of money ensuring that government did not regulate their activities.[39] Wall Street spent a record $2 billion trying to influence the 2016 United States elections.[40][41]