Scope and Effect of the Immunity Principles in International Private and Business Law

Abstract

In today's modern era, business activities are growing rapidly. This evolutive process is characterized by a growing number of trade agreements concluded by business parties of different nationalities. The more investment agreement deals, the more state receives economic advantages to support its development. Moreover, state plays important role in encouraging and maintaining the fair business environment within their territory by imposing laws, conducive political guarantee, and impartial policies. As a part of efforts to boost their economic welfare, state is also conducting commercial activities. In fact, there are many ways of state involvement in the business network, such as: being major stockholder of corporation (or establishing state owned enterprise), engagement into profitable contract with private actors, and embed investment in foreign countries. Particularly several state owned enterprises (SOE) overrun world market and saddle up to compete with multinational private owned enterprises.