Bargains old and new: multinational corporations in global governance

Abstract
This paper outlines an approach for understanding the role of multinational corpora- tions (MNCs) in global governance. We develop a typology of regime types with two dimensions, the goal of the regime, which can be market enabling or regulatory, and the location of authority, which can be national, regional, or international, with public and private elements. MNCs tend to support the creation of market enabling regimes at the international level, and prefer to keep social or environmental regulation under national or private authority. However, these are only generalizations and MNCs develop preferences based on their relative influence in various arenas, the costs of political participation, and competitive considerations. We argue that institutions of global governance represent the outcome of a series of negotiations among corporations, states, and non-state actors. The preferences and power of MNCs vary across issues and sectors, and from one negotiating forum to another, accounting for the uneven and fragmented nature of the resulting system. Our approach differs from the traditional FDI bargaining framework in that it recognizes the multi-party nature of negotiations and multiple sources of power. Moreover, the complexity and dynamic nature of the process results in a somewhat indeterminate process. examined regimes from the perspective of multinational corporations (MNCs), despite their critical influence in the international political economy. Drawing on international business and international political economy literatures, this paper outlines an approach to analyzing regimes from the perspective of MNCs. In doing so, we build upon the work of Raymond Vernon, whose Product Life Cycle theory of trade and investment moved the conceptual spotlight from nations to corporate strategy.2 In this tradition, we seek to understand the formation and content of regimes of international governance in terms of the interests and strategies of MNCs.