What regulates international investments?

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International investment is regulated by national and international law. At the global level, a system of multilateral and bilateral investment agreements has been created.

Key multilateral conventions for the protection of foreign investors :

Washington Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID).
Seoul Convention establishing the Multilateral Investment Guarantee Agency (MIGA) within the World Bank.
Agreement on Trade-Related Aspects of Investment Measures (TRIMS) within the WTO.
Bilateral investment treaties (BITs) are widely used to promote and protect investment, guaranteeing foreign investors fair treatment and protection from discrimination and expropriation.

At the country level, there are general and special lebanon whatsapp phone number regulatory legal acts: codes, laws, regulations governing the admission and activities of foreign investors. Government agencies conduct a selective policy of screening and encouraging FDI.



How to choose a country for international foreign investment
Decisions about foreign investment should be based on an assessment of a wide range of country factors :

Current state and prospects for economic development of the host country. Key indicators are the level and dynamics of GDP, disposable household income.
Stability of the macroeconomic and political situation. Important indicators are inflation, budget deficit, frequency of changes in ruling parties and mass protests.
The scale and dynamics of target markets for product sales. The solvent demand of the population, the presence of related and supporting industries are assessed.
Development of the regulatory framework governing the activities of investors. Barriers include non-transparent procedures for registration, licensing, and certification.
Non-commercial risks of nationalization, confiscation of property, introduction of restrictions on capital transactions, conversion and repatriation of profits.
Availability of the necessary production, transport, business infrastructure. Provision of natural resources and qualified personnel.
The severity of the problems of corruption in government and administrative bodies, compliance with the law and order, and protection of the property rights of investors.
These parameters are reflected in annual country ratings of investment attractiveness: the Doing Business index from the World Bank, ratings from the Bloomberg agency, Forbes and US News magazines.



Investments in international funds
Investment funds focused on investing in foreign financial instruments are becoming increasingly popular around the world :

retail mutual funds that purchase diversified sets of stocks and bonds of foreign issuers;
Exchange Traded Funds (ETF) - exchange-traded funds that track the dynamics of country stock indices (S&P 500, FTSE 100, Nikkei 225);
industry funds investing in securities of global sectors - healthcare, IT, renewable energy;
Real Estate Investment Trusts (REITs) are funds that own commercial and residential real estate abroad.
International funds allow private investors with small capital to gain access to globally diversified investments managed by teams of experienced professionals. But it is important to consider the risks of adverse changes in exchange rates and high fees for managers' services.

The development of international investment plays an increasing role in the functioning of the global economy, linking national financial markets into a single global economic system. They serve as drivers of economic growth, innovation and technological exchange between countries, and effective redistribution of capital on a global scale. At the same time, cross-border investment is associated with special risks and requires constant monitoring of the foreign business environment.