Which of the following is a characteristic of stabilization clauses?
A) They can be changed by the mutual agreement of the parties.
B) They can prevent a state from nationalizing a foreign investment.
C) They can prevent a state from expropriating a foreign investment.
D) They guarantee equality of treatment with regard to ownership rights, taxation, and, social matters.

Question

Quizplus · Accepted Answer

Stabilization clauses can be changed by mutual agreement of the parties involved. They are designed to provide a stable legal and fiscal environment for foreign investors, but they do not prevent nationalization or expropriation, nor do they guarantee equality of treatment.

Which of the Following Is a Characteristic of Stabilization Clauses