Abyssinia Law
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Investment Law (10)
Liberal economic theory is based on the premise that free-market yield maximum productivity. In the eighteenth century, Adam Smith and David Ricardo came up with the liberal economic theory and challenged mercantilism. Mercantilism argues that extensive state regulation of economic activity is necessary to promote the interest of a nation.…
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When communism proved to be unsuccessful, a free-market economy was accepted as a means to marshal economic development. Then, the private economy was considered essential for the development of an economy. As a result, privatization of state companies took place in developed and developing countries. Accordingly, the ideological predisposition to…
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The dependency theory is a criticism of the classical theory. It does focus on an entirely different meaning of economic development. It redefines development as requiring not wealth transfer to the host state, but the development of the people of a state as a whole. It is popular among Latin…
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According to classical economic theory, foreign investment is wholly beneficial to the host economy. In other words, pursuant to the classical economic theory, it is the economy where the investment is made that benefited wholly from the investment. What are the reasons upon which classical economic theory is based? Capital…
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Throughout the history of capitalism, investment has been primarily the function of private business; during the 20th century, however, governments in planned economies and developing countries have become important investors. Before 1930, investment was thought to be strongly affected by the growing rate of interest, with the rate of investment…
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Law of investment, in general, is a branch of a law consisting of set of rules that regulate investment. Investment law may be either international law on foreign investment or national law. International law on foreign investment may be defined as a set of rules that govern international investment. International…
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General In developing countries, the trend is that both inflows and outflows rose in 2005 although trends varied by regions. According to the study conducted by the UN, inflows into and outflows from Latin America and the Caribbean and West Asia rose in 2005. But, only inflows rose in Africa…
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Investment may be categorized differently. From the standpoint of an individual, two types of investment may be distinguished: investment in the means of production, and purely financial investment. Both types may provide a monetary return to the investor. However, from the standpoint of the entire economy, purely financial investments appear…
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Elements of Investment There are three factors that are considered as elements of investment. a) Reward (return); b) Risk and return; and c) Time [1] A. Reward We have seen above that investment is made with the intention to gain profit. Thus, investors, generally, may expend their fund to…
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The term ‘investment’ may mean different things in different disciplines and contexts. Thus, it may mean “expenditure to acquire property or assets to produce revenue”.[1] Fisher and Jordan[2] define investment as commitment of funds made in the expectation of some positive rate of return. According to them, the return will…
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