A commitment of capital in a foreign state, particularly with long-term profit horizons, can be a risky undertaking. When a host state harms a foreign company's investment, the domestic legal system may not provide an adequate remedy. For example, an investor may not wish to settle disputes before a host state's domestic courts for reasons of (i) fear of bias; or (ii) unfamiliarity with the domestic legal system.
Please see full publication below for more information.