Foreign Direct Investment

Chapter 7 discusses the legal issues likely to arise during foreign direct investment (FDI). It begins with the advantages and forms of FDI, including the formation of foreign subsidiaries, joint ventures, and international mergers and acquisitions. It describes U.S. reporting requirements for FDI, as well as the Exon-Florio requirements for notice or approval of foreign acquisitions of U.S. assets. It then describes the competition law notification process, with a focus on the U.S. Hart-Scott-Rodino Act. General rules for international employment regulation are summarized, as well as U.S. corporate immigration rules and procedures. It then introduces the concept of corporate social responsibility and discusses how the international community has pressured business organizations to respect human rights and the natural environment. It summarizes the international mechanisms for financing foreign investment, with an emphasis on government loan guarantees and international project finance through U.S. and international channels, as well as investment insurance options.