The act of state doctrine can have important consequences for firms doing business in other countries.

Question

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The act of state doctrine is a legal principle that governs the relationship between foreign governments and national courts. It provides that a court will not question the validity of an act done by a foreign government within its own territory. This can have important consequences for firms doing business in other countries, as their dealings with the foreign government may be subject to this doctrine.

The Act of State Doctrine Can Have Important Consequences for Firms