ABSTRACT
This chapter examines the possibility of establishing Host Country Councils at the seat of transnational enterprises (TNEs) headquarters. It deals with TNEs that contain a set of rules of conduct for their activities in Non-Aligned Countries. Many of the problems connected with the transnational character of TNEs are also faced by labor unions. Host country involvement may eventually also be expected in the determination of enterprise policy concerning areas such as transfer pricing and income distribution, restrictive business practices, and capital movements. Home country governments—realizing that they could be drawn into conflicts between their TNEs and host countries—could also encourage the establishment of Host Country Councils as a means of preventing such conflicts or at least reducing their frequency. International instruments are highly fragmentary in their coverage of issues and their main purposes is frequently not the control of TNE activities but rather their promotion.
