... led to developing states entering into agreements with multinationals, regardless of their fears. This indicates a de facto recognition of the rights of multinationals in the international legal system, in its ability to enter into agreements with states. Such rights under international law though, are seen as limited to those conferred from the agreement. The agreement may not actually even involve international law, coming under the jurisdiction of municipal law. For it is common for agreements to include a 'choice of law' clause allowing the parties to stipulate the 'rules of law' that any dispute arising from the agreement will be settled under. Thus the national law of the host state may be chosen, multinationals though are usually reluctant to do this, in case of changes in the law which prove adverse to their interests. Hence international law or general principles of law is commonly employed for arbitration. If international law is ...

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