Fiona Beveridge
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Challenges to the international legal order
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The current provisions for the protection and regulation of foreign investment and for the taxation of transnational business are riddled with flaws, whether viewed from an economic, political or legal perspective. This chapter examines a number of the most important criticisms of these provisions in greater depth, first in relation to foreign investment, then in relation to taxation. It also addresses some of the problems common to those provision. The first is the problem of one state seeking to impose its political viewpoint on other states in a way that contravenes established international law rules. A second and more general problem relates to the position of the 'free-rider', the state which seeks to remains free from the obligations entailed by participation in a legal regime or network of obligations, but which nevertheless benefits from such participation by other states.

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