INTERNATIONAL LAW RELATING TO FACTOR MOVEMENT
In this work it will be analyzed an important issue about International Law: International Law relating to factor movement. In international economics, international factor movements are movements of labor, capital, and other factors of production between countries. International factor movements occur in three ways: immigration/emigration, capital transfers through international borrowing and lending, and foreign direct investment. International factor movements also raise political and social issues not present in trade in goods and services. Nations frequently restrict immigration, capital flows, and foreign direct investment. In order to explain all the problems that a complex issue like this presents, we will discuss about the following arguments:
1. International Investment Law, which concerns investment law related to the capital flows from developed states to developing countries; bilateral investment treaties; expropriation; dispute settlement; world bank guidelines and MIGA and other investment guarantee schemes.
2. International Movement of Labour and Labour Standards, which concerns movement of labour; labour movement; harmonization of labour law and social standards and trade, investments and social standards.
3. International Fiscal Law: Relief from Double Taxation which talks about the problem of double taxation and explains the four systems for relief it, namely, credit method, tax sparing, exemption method and deduction method. Finally, it will be analyzed the important issue of exchange of informations.
INTERNATIONAL INVESTEMENT LAW
International investment law concerns with direct indirect or portfolio investment of foreign property abroad. Its main concerns are standards of treatment in the host State, especially investment protection and dispute settlement. At the same time, in recent years the globalization of economy leads to more and more questions including market liberalization. Traditionally, international investment law was particularly related to the capital flows from developed states to developing countries; nevertheless, due to the traditional development dimension and the impact on sovereignty, no multilateral framework exists, it remains therefore mainly bilateral at the level of treaty practice and related case-law from arbitration. There is still no comprehensive international legal framework governing the International Law of Investment. At the same time the number of bilateral treaties has been growing rapidly in recent decades and there are an increasing number of investment disputes that are subject to International scrutiny. States have a general freedom to regulate the entry of foreign investment and a general discretion as to how they treat that investment post entry. This general discretion is qualified by the law on expropriation. In the framework of general International law, the primary normative pre-occupation has been the protection of foreign property against expropriation and treatment that is not “fair and equitable” or does not provide “full protection and security”. At the treaty level, investment norms are to be found mainly in bilateral investment agreements, known as BITs. Some aspects of investment were also covered in the Lomè Convention of 1992. The Economic Partnership Agreements that were promoted in recent years by the European Union to govern the future trade and investment relation between the EU and the ACP countries also contain some norms on investment. At the sectorial level, a key instrument of note is the Energy Charter Treaty (1994). These treaty instruments focus mainly in protection of foreign investment, non-discrimination and the provision for dispute settlement. On the whole the treaty norms are scattered and non-comprehensive. At national level there is now a general trend towards the reduction of barriers to entry of foreign direct investment; similarly there is an increase in...
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