- Definition of investment — Foreign Direct Investment — Control — Loans — BITs (Bilateral Investment Treaties)
This chapter explains the nature and significance of international investments and investors. All international investment treaties focus on two subjects: (1) investments, particularly international or ‘foreign investments’; and (2) investors, especially international or ‘foreign investors’. An understanding of these two phenomena is fundamental to understanding the growing role and significance of investment treaties in international economic life. The meaning of the term ‘investment’ at its most basic level is the commitment of resources by a physical or legal person to a specific purpose in order to earn a profit or to gain a return. Meanwhile, there are four basic categories of investors: private investors; state investors; international organizations; and mixed enterprises. The chapter then looks at the different forms of international investment.
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