Should countries regulate their corporations’ foreign activities?

In today’s globalized world, it has become apparent that many MNEs take advantage of the gaps in regulatory environments and political economy between different countries, by means of unethical practices. Given the seriousness of the issue, how should MNEs operations in other (less developed) countries be regulated? Should they be allowed to take advantage of differences in regulatory standards between different countries, in the first place? Should home country governments step in? Should the task rather be left to host countries’ civil society? Or should MNEs self-regulate? In this paper, I argue that MNEs need to self-regulate. MNEs should be given ample freedom to shape their corporate strategies, thereby facilitating global trade in an optimal way. Individual countries’ sovereignty and autonomy should also be respected.