question archive What general principles can you come up Witn ror torelgn direct nvestors using interests, rights, and power to protect their nvestments in developing countries?
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What general principles can you come up Witn ror torelgn direct nvestors using interests, rights, and power to protect their nvestments in developing countries?
Answer:
Direct Investment
Direct investment means giving the company shareholder full control of the company. This is usually done by developing countries to bring equality in the society since major of investment ar portfolio which are controlled by the government. However, there must be laws to restrict the behavior of investors who may want to use their interest, power, and money to manipulate the governing system. This principle was advocated by FDIs to guide developing countries
> No discrimination by law- the principle is to make sure that the governing laws of the nation cannot discriminate anybody regardless of their position. It is important to issue this principle to any investor before allowing them to invest in a country. Also, the crucial part of the principle is implementation, the governing body of the developing country must be ready to implement this principle in order for it to work. A principle without the will of implanting it cannot control anybody.