OBLIGATION OF FOREIGN INVESTOR AS MULTINATIONAL CORPORATION

Abstract

Investor has rights as well as obligation when he makes investment in other country. There are many issues arise related to IIAs. Investor in the form of MNCs invests in other country. Sometimes investor behaves in irregular manner and become corrupted. There are many BITs providing the rights of investor and if their rights are infringed then grant the remedies to such investor. Most commonly rights like compensation in case of the expropriation of the investor, prohibition of discrimination between foreign investor and citizens of the host county, “Right to fair and equitable treatment”, “Right to full protection and security” from host country.Under BITs there is protection is given in respective countries.  These countries also address obligation and duties on investor.  Main purpose of BITs is to ensure the compliance of duties and obligation with the host state. There are different type of duties such as human rights, environment protection and labour standard. After the World war II there  was  question arise if corporation as foreign investor enter in other countries and misbehave in such country then what rules and regulation administer and govern the behaviour of TNC s in host countries. However this problem is tackle by implementing UNCTC. These international agreements impose liability and obligation on MNC directly and indirectly.