The Effectiveness of Bilateral Investment Treaties in Promoting Foreign Direct Investments

International investors frequently have doubts about the strength of national institutions and the ability of the law to be upheld in emerging nations. Certain standards of treatment are guaranteed by Bilateral Investment Treaties (BITs), which can be enforced through legally binding investor-state dispute settlement outside of the home legal system. The declared goal of bilateral investment treaties (BITs) is to insulate developing nations from political and other dangers so that they can attract more foreign direct investment (FDI), which is why developing nations agree to accept limits on their sovereignty.