>Even the smallest nations have the legal right to permanently incarcerate, strip you of your assets or even murder you if you are in their sphere of influence.

A nation that did that would be able to do that exactly once before everyone decides to never do business with it ever again, which they can afford to do because it's such a small market. Exercising arbitrary power is not the trump card you think it is. Hell, even a tiny nation with reasonable but annoying (from the point of view of a corporation) laws may not be worth it to deal with.