International Activity and Domestic Law

Abstract

This invited essay explores the ways States use their domestic laws to regulate activities that cross national borders. Domestic-law enforcement decisions play an underappreciated role in the development of international regulatory policy, particularly in situations where the enforcing State's power to apply its law extraterritorially is not contested. Collective action problems suggest there will be an undersupply of enforcement decisions that promote global welfare and an oversupply of enforcement decisions that promote national welfare. These collective action problems may be mitigated in part by government networks and other forms of regulatory cooperation.

Keywords: extraterritorial, extraterritoriality, international, collective action, free-rider, free-riding, conflict, multinational, regulation, domestic law, enforcement, administrative

JEL Classification: A12, F00, F02, F23