 Foreign Direct Investment. Chapter 7 in Introduction to International Business Transactions, 2020, pp 507-600 from Edward Elgar Publishing Abstract: This chapter explains the process of forming, financing, and operating a new foreign company. Foreign direct investment is a complex and risky venture, requiring analysis in diverse fields of law. This chapter focuses on the considerations unique to forming and operating a foreign investment. It begins by explaining the attraction of foreign investment to a business firm, describing the various forms that foreign investment may take, and discusses the advantages and disadvantages of each. It then summarizes the U.S. regulatory regime for registering and reporting foreign investments, and the national security review process known as Exon-Florio review. It then discusses a common requirement for foreign investment transactions, known as premerger notification and review. The chapter then describes in general terms some of the legal regimes that are likely to regulate foreign investment, such as labor and employment law and corporate immigration regulation. It describes international efforts to impose corporate social responsibility on multinational enterprises and the international guidelines that have resulted. It then discusses the legal issues relating to financing of foreign investments, including U.S. and international agencies that frequently assist business firms with cross-border credit, working capital loans, and major project finance. It discusses the intricacies of project finance as they relate to legal arrangements to regulate risk and allocate control over major foreign investment projects. Finally, it introduces the special risks involved in foreign investment and the role of insurance provided by international agencies and national government agencies. It concludes with practice essays and multiple choice questions. Keywords: Business and Management; Economics and Finance; Law - Academic (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:19782_7 Ordering information: This item can be ordered from Access Statistics for this chapter More chapters in Chapters from Edward Elgar Publishing |
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