8 Investment Promotion, Admission, and Establishment

Subject(s):

Investment — Sovereignty

This chapter begins with a brief discussion of how states exercise their sovereign authority to develop policies and laws that govern the admission and operation of foreign investment. States have complete legislative jurisdiction to determine to what extent foreign nationals and companies may undertake investments, which sectors and industries they may or may not enter, and whether or not they must fulfil additional conditions in order to undertake and operate an investment within state territory. The chapter then explains treaty provisions on investment promotion, admission, and establishment, by which the treaty movement has sought to achieve one of its aims, ie reducing internal barriers to foreign investment.