Protecting American investors in emerging markets: A comparative study
USC Marshall School of Business, University of Southern California, Los Angeles, CA, USA.
Review Article
World Journal of Advanced Research and Reviews, 2024, 24(03), 272–280
Publication history:
Received on 21 October 2024; revised on 01 December 2024; accepted on 03 December 2024
Abstract:
Emerging markets provide significant opportunities for American investors, but they also carry substantial risks, including political instability, regulatory unpredictability, and currency volatility. This comparative study examines the key challenges faced by American investors in emerging markets such as Brazil, India, and China, focusing on strategies and legal mechanisms available to protect their investments. The paper explores the role of bilateral investment treaties, which provide a legal framework ensuring fair treatment, safeguards against expropriation, and recourse through international arbitration. Additionally, the study evaluates the effectiveness of U.S. regulations such as the Foreign Corrupt Practices Act, which has helped reduce corruption risks but can create challenges in high-risk markets. Drawing on economic and legal data, this article proposes several policy recommendations to enhance protections for American investors, including the expansion of bilateral investment treaties and the strengthening of international arbitration mechanisms. Ultimately, this study underscores the need for robust legal and financial frameworks to foster investor confidence and promote stable growth in emerging markets.
Keywords:
Emerging Markets; Investment Protection; American Investors; Bilateral Investment Treaties; Risk Mitigation; Regulatory Framework; International Arbitration
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0