Foreign investment and the settlement of investment disputes

Abstract

The topic of the thesis is foreign investment and the relating regulation system. The thesis presents the definition of foreign investment, since in the past decade, investment, especially foreign direct investment has come to play a major role in the internationalization of business. Foreign direct investment is a key element in international economic integration, since it creates direct, constant and long-term relations between economies. Then the thesis is going to summarize the dispute settlement mechanisms of investment agreements, especially the ICSID system, which is the most favorable dispute settlement method in the area of investments. Finally it deals with the general provisions and aim of the Multilateral Investment Guarantee Agency which provides non-commercial guarantees for cross-border investments into developing countries. The thesis seeks to identify major features of international law on foreign investment and the relating dispute settlement methods.