Regulating Multinationals

Oxford University Press eBooks, pp. 80–117

Abstract

Abstract This chapter examines the interaction of multinational enterprises (MNEs) with the political communities in which they operate. It first maps the actors involved and identifies their respective roles and interests. The chapter then considers the effects of MNEs on home and host communities and economies. This involves ideological themes that have influenced the regulatory debate not only historically, but also for the present and future. The chapter also explores the principal levels and methods of regulation, discussing the relationship between formal regulation by state bodies and informal regulation by non-state actors; outlining the available sources of regulatory rules and practices; and assessing the choices of legal jurisdiction between the national, bilateral, regional and multilateral levels. Integrated global production, dominated by MNEs, has led to changes in international and national regulatory environments away from ‘investor control’ towards ‘investor promotion and protection’. At the same time, with the end of the Cold War and the disintegration of the socialist system, there appears to be no serious alternative to the corporate capitalism espoused by MNEs, backed up by the ‘neoliberal’ system of market-led globalization. However, recent challenges to the ‘neoliberal’ ascendancy come from economic nationalism and protectionism as well as greater concern for corporate social responsibility and accountability.

Authors 3

1. Muchlinski Peter T

   University of London · SOAS University of London

   Affiliation as printed

   School of Oriental and African Studies, University of London

2. Barnali Choudhury

   York University

   Affiliation as printed

   Osgoode Hall Law School

3. Ebbe Rogge Aachen

   Leiden University

   Affiliation as printed

   Leiden University