What is a bilateral investment treaty (BIT)?

Question

Quizplus · Accepted Answer

A bilateral investment treaty (BIT) is a type of international agreement between two countries designed to promote and protect private foreign investment. The main purpose of a BIT is to protect investors from discrimination or expropriation by the host government. It typically includes provisions on investment protection, investor-state arbitration, and dispute settlement.

A) is incorrect because it refers to an IMF loan agreement, not a bilateral investment treaty.

C) is also incorrect because tax treaties are separate agreements from BITs and deal exclusively with taxation matters.

D) is incorrect because it does not relate to bilateral investment treaties, but rather to bailing out foreign banks for risky investments.

What Is a Bilateral Investment Treaty (BIT)