Once a foreign firm creates a subsidiary abroad under its control,it risks waiving its protection under bilateral investment treaties.

Question

Quizplus · Accepted Answer

When a foreign firm creates a subsidiary abroad under its control, it may be considered a local company in that country. Local companies may not be protected by bilateral investment treaties that are established between countries to promote and protect investments. Therefore, creating a subsidiary abroad may waive the foreign firm's protection under such treaties.

Once a Foreign Firm Creates a Subsidiary Abroad Under Its