The rules of international law governing the expropriation of alien property have long been of central concern to foreigners in general and to foreign investors in particular. Expropriation is the most severe form of interference with property. All expectations of the investor are destroyed if the investment is taken without adequate compensation. On the level of customary international law, the minimum standard for the protection of aliens came to place limitations on the territorial sovereignty of the host state and to protect alien property. On the level of...
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