Fiona Beveridge
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Setting standards for the treatment of foreign investment
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Much of the history of international law relating to foreign investment concerns the efforts of developed states to set and encapsulate in binding legal norms minimum standards of treatment for foreign investment, and the efforts of developed states to resist the imposition of these standards, at least in part. This chapter outlines early efforts to set standards for the treatment and protection of foreign investment. In particular, it examines the phenomenon of Bilateral Investment Treaties and the Code Movements. As Sornarajah notes, the various attempts to regulate foreign investment can be divided into two categories: the attempts (principally) by developed countries to limit and otherwise regulate the scope of host state action vis-à-vis foreign investment, thus producing a more secure and advantageous investment climate, and attempts by developing countries to regulate the activities and power of Multinational Enterprises.

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