Legal Relationships Between Transnational Corporations and Host States

Written primarily for professionals in international law, this volume examines the complex legal issues involved in the relationships between multinational corporations and the host countries in which they operate. Arguing that international law does have a role in defining and structuring relationships between transnational companies and host states, the author uses real case examples to identify some of the problems inherent in these often fragile relationships and to enumerate and critique the international initiatives that have endeavored to address them. In addition, the author develops new juridical responses to some seemingly intractable problems in the relationship between multinationals and host countries, offering concrete prescriptive postulates on such specific matters as reviews and renegotiation of agreements, transfer pricing, repatriation of profits, and standards for consumer and environmental protection. Bondzi-Simpson is concerned throughout with the promotion and protection of foreign investment in a manner that is compatible with and enhances the development objectives of host states. He offers an overview and evaluation of the draft Code of Conduct on TNCs and analyzes the functioning of such organizations as the UN Commission and Centre on TNCs, the Multilateral Investment Guarantee Agency, and the International Centre for the Settlement of Investment Disputes that seek to encourage more rationalized arrangements in the international investment arena. Calling for a multilateral regulatory regime that provides concrete standards concerning foreign investments, the author provides the legal framework for such a regime designed to both promote foreign investments and define and enforce standards of conduct and accountability by foreign investors. A detailed bibliography is included for those wishing to pursue further research in this area.