REGULATION OF TRANSNATIONAL CORPORATIONS: HISTORICAL EVOLUTION AND CONTEMPORARY INSTRUMENTS

Abstract

This article examines the evolution of regulatory approaches to the activities of multinational corporations within the broader development of the global economy. It traces the shift from predominantly national regulatory frameworks to increasingly complex systems of international coordination, reflecting the growing interdependence of states and markets. The study highlights how globalization and digital transformation have strengthened the role of multinational corporations while simultaneously complicating their interaction with national governments, particularly in areas where jurisdictional boundaries become blurred. Particular attention is given to contemporary regulatory instruments, including competition policy, tax initiatives, and environmental and social standards, which are being continuously adapted to address new economic realities. The analysis emphasizes that traditional regulatory tools often lag behind the pace of technological change, creating gaps that corporations can exploit. In this context, the role of international organizations and multilateral agreements becomes increasingly significant in shaping common principles and ensuring a more level playing field. The paper also outlines key challenges associated with corporate tax avoidance, economic influence on host countries, and the restructuring of global value chains, especially in light of recent geopolitical and economic disruptions. It further explores how digital platforms and intangible assets complicate the attribution of value creation and taxation rights. Moreover, attention is paid to the asymmetry between developed and developing economies in their capacity to regulate large corporations effectively. It argues that more coherent international cooperation and adaptive regulatory mechanisms are essential for ensuring balanced and sustainable economic development, strengthening accountability, and fostering greater transparency in cross-border corporate activities while maintaining incentives for innovation and investment in the context of ongoing global economic transformation and integration.