Advantages And Disadvantages Of Cross Border Investment

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CHAPTER 5 CONCLUSION AND SUGGESTIONS CONCLUSION Countries compete with each other in order to attract foreign investments for a number of reasons. In addition to the economic benefits that an infusion of new capital brings into the country’s economy and the prospect of new employment opportunities, foreign investment also results in the introduction of new technology, and with it increased competition into and out of the economy. Prior to 1994 agreements cross-border investment was mainly by developed world capital exporting countries such as US, UK, Germany, Japan. Their main concern was protection of capital investments made by their multinational entities against expropriation, as well as their ability to repatriate profits against laws…show more content…
But the BIT’s are required in order to give a clarity and confidence to the investor, that in case of any dispute, he can take recourse to the BIT and he need not rely on the municipal law of host country which he will presume to be biased. When there is a dispute relating to international commercial arbitration it’s resolved by taking recourse to either UNCITAL or ICSID. In case, the BIT’s will not be followed or formed, the law to govern investment would be the customary international law. This law is favoured by the developed countries but is objected by the developing countries as they say when these laws were framed in 1940- 1960 era, they were not in existence. So, the developing countries claim the customary international laws to be a creation by the developed states and hence they are not willing to follow the laws presuming these to be…show more content…
 A balanced approach should be taken regarding the confidentiality and transparency of the arbitral proceedings by: prompt publication of final awards and public access to documents after the proceedings are over, subject to the parties right to petition the tribunal not to disclose the information which will be sensitive or could hamper the business. The tribunals should have the discretion to restrict public access to information, during pendency of the proceeding so as to protect the integrity of the arbitral process.  Creating a standardized ideal of the public interest, leaving it to the states to determine the scope of its reference and application.  Incorporating a version of GATT Article XX and GATS Article XIV, having priority over the other provisions of the agreement.  Instead of completely leaving the BIT’s, these should be modified with better dispute settlement mechanisms, favouring the interest of both investors and host

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