Documentos de Académico
Documentos de Profesional
Documentos de Cultura
FOREIGN
INVESTMENT
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CHAPTER 5
FOREIGN INVESTMENT
Topics for this chapter:
Foreign
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Foreign Investment
Laws and Codes
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Bilateral Investment
Treaties (BITs)
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National Foreign
Investment Policies
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Screening Foreign
Investment Applications
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Information That
Must Be Disclosed
a)
b)
c)
d)
e)
f)
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Evaluation Criteria
a)
b)
c)
d)
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f)
g)
h)
i)
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Approval of Foreign
Investment Applications
Approval
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Business Forms
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investment laws
frequently limit the
percentage of equity that
foreigners may hold in
local businesses.
Foreign Investment
Promotion Board (FIPB)
screens all applications for
foreign investment in India.
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Sectoral Limitations
Foreign
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Closed Sectors
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Restricted Sectors
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Restricted Sectors
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Recent changes in
Australia re real estate
From
Recent changes in
Australia re real estate
From
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Geographic Limitations
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in Mexico.
Foreigners were forbidden from owning property within
50 kilometres of the shore, Mexicos Forbidden Zone.
BC hired Brown, who created contracts under which BC
invested in property through a Mexican company. Due
to problems under Mexican laws with this arrangement
Brown manipulated the transactions by forming
corporations with his family members as majority
stockholders.
Brown then committed fraud and breached his fiduciary
duties of his power of attorney by transferring the
properties to his family members.
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Brady v. Brown
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Free Zones
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Free Zones
Characterized by Size
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Free Zones
Characterized by Size
State may open up its entire
territory or all its sectors (e.g.
Singapore).
May open up certain regions (e.g.
Chinas Special Economic Zones).
The oldest type of zone is the
free city, an entire port city that
has been opened to international
trade (e.g. Hong Kong until 1997).
The free trade zone (or foreign
trade zone) is a designated
smaller area near a port.
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Storage
Distribution
Manufacturing
Retailing
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Tribunal findings:
Qatar
had negotiated in good faith. It had no duty
to accept the natural gas proposals.
There was no expropriation of claimants
contractual rights for failing to accept new
proposals for areas outside the Contract
Area.
The notice of relinquishment was ineffective.
The claimants had yet to be allowed to
explore Structure A and Qatar had failed to
inform them of the Bahrain dispute.
2009 Pearson Education, Inc publishing as Prentice Hall
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Protection of Subsidiaries
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Protection of Subsidiaries:
Disclosure of Information
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Protection of a Subsidiarys
Minority Shareholders
Protection of a Subsidiarys
Creditors
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Protection of a Subsidiarys
Tort Victims
A host state may act
on behalf of injured
persons when a
subsidiary causes
injury. Remedies
may be pursued in
local courts and
foreign courts.
The Bhopal case
from India sets forth
this right.
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2009 Pearson Education, Inc publishing as Prentice Hall
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Securities Regulations
National
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Securities
A security is
1. A share, participation, or other interest
in an enterprise or other property or
2. A debt obligation.
A Stock or a share is a share in the
ownership of a company that entitles its
owner to rights in the company.
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Securities
Securities
Securities
Securities
Securities
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2009 Pearson Education, Inc publishing as Prentice Hall
Securities Exchanges
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Issuance of Securities
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Depository Receipts
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Takeover Regulations
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Enforcement of Securities
Regulations Internationally
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