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Foreign Investment And Its Effects On Economic Development

Introduction Foreign investment is a tool to foster the economic development in a country. It can be denied that foreign investment helps poor countries to boost their development faster than just only relying on domestic business. The first bilateral treaty was signed in 1959 between Germany and Pakistan. After World War II, European countries started to expand their business to the developing countries? markets. BITs were signed to give confidence to business players from developed states by offering more protection than just relying on domestic law. Before 1980, the protection of investment was the task of diplomatic negotiations, and when disputed, international customary law was in the eyes of ad hoc claims tribunals. International†¦show more content†¦According to Vinuales, environmental considerations become more and more necessary component in foreign investment disputes.[footnoteRef:4] In addition, Sonarajah states that the emergence of environmental claims in international inve stment field started in the beginning of the 2000s where environment had been neglected in the IIAs negotiation and dispute settlement.[footnoteRef:5] The traditional BITs did not put much debate on environmental protection, but, the first regional investment treaties integrated into a free trade agreement, the NAFTA became starting point for environmental lawyers and policy makers about the possibility risks to environmental regulation.[footnoteRef:6] Even though, these treaties still put restriction to host countries to regulate the law in the purpose of environmental protection, the investor-state dispute settlement in modern BITs has managed to take into account environmental as a component in some cases.[footnoteRef:7] [4: The environment issues

Long-Term Planning Free Essays

â€Å"Pay yourself first† is a standard commitment device used by financial planners seeking to encourage disciplined saving and budgeting; it is also the principle underlying US payroll-deduction 401(k) plans. These plans are one of the most successful commitment devices in current use, and they are formulated such that contributions are automatically deducted from workers’ pay before the money can be spent. As such, saving in 401(k)-type plans would be best for my personal situation, as participation rates in 401(k)-type plans, where payroll deduction is the norm, are at least four times as high as for Individual Retirement Accounts (IRAs) (Mitchell and Utkus, 2004), where structured payroll deductions are uncommon. We will write a custom essay sample on Long-Term Planning or any similar topic only for you Order Now Additionally, I am given the liberty to exert some control over how my money is invested (subject to some constraints), and receive the risk and reward for those investments. Since my tax rate when I retire would be presumably higher than my tax rate before retirement, I would likewise be better off with a Roth IRA than a traditional IRA because I won’t have to pay tax on my withdrawals at the higher rates. I can withdraw the money I contributed to a Roth IRA penalty-free anytime, since I already paid tax on it so the government would not care. Since I would not probably need my money I invested in Roth IRA for at least five years from now, my money will be tax-free on withdrawal. The catch is that I cannot know for sure what my tax rate would be when I retire, but I can find several online calculators that will help me compare results with a Roth IRA versus traditional IRA. Further, the new Roth IRA provisions apply even if I am covered under my employer’s retirement program. Lastly, the SEP proves to be a promising retirement plan based on my personal situation. Although the SEP is an employer-provided retirement plan, record-keeping and tax reporting are simplified, a plus factor for me. The higher limit in a SEP makes this plan as attractive as the profit-sharing plan, but easier and less costly to administer, which are two of my foremost criteria when choosing a fitting retirement plan for myself. WORK CITED Mitchell, O. Utkus, S. (Eds.). (2004). Pension Design and Structure: New Lessons from Behavioral Finance. Oxford, England How to cite Long-Term Planning, Essay examples