________ promise foreign investors that the host government will not change its tax, foreign exchange, or other legal régime for a certain period of time, or that changes subsequent to the establishment of an enterprise will not affect that enterprise.
A) Nondiscrimination guarantees
B) Repatriation guarantees
C) Stabilization clauses
D) Appraisal rights

Question

Quizplus · Accepted Answer

Stabilization clauses are agreements that promise foreign investors that the host government will not change its tax, foreign exchange, or other legal regime for a certain period of time, or that changes subsequent to the establishment of an enterprise will not affect that enterprise. Nondiscrimination guarantees refer to ensuring that foreign investors are treated no less favorably than domestic investors, while repatriation guarantees refer to the ability of investors to repatriate their profits and capital from the host country. Appraisal rights refer to the right of shareholders of a company to assess the fair market value of their shares in the event of certain corporate actions.

________ Promise Foreign Investors That the Host Government Will Not