A Brief Analysis on Why the National Initiatives are Inevitably Insufficient to Curb Multinational Corporations

Corporations have been named as the key economic actors in the globalised world. Most countries find themselves dominated by major multinational corporations. Even though corporations create many positive outcomes for national economies, they possess a myriad of negative impact on people, especially on employees. Yet, it is not easy to reduce this negative impact via traditional/national regulatory strategies since many such corporations carry out their operations, either directly, or indirectly, through their subsidiaries, doing so across several countries, whilst others conduct their operations in the midst of complex supply chains that are located beyond national borders. This situation makes corporations transnational actors that may not be curbed by any single domestic regulation. However, why do not individual states regulate such companies sufficiently in their own country through the patchwork of domestic regulations? The following paper shall briefly examine why national governments are reluctant to play an active role in terms of corporate regulation