Which of the following statements is most likely to be true regarding the supervision of foreign investment?
A) The foreign investor whose application has been approved by the host state is usually subject to some time limit in which to start construction and/or begin operation.
B) Very few countries require investors to submit periodic reports during the start-up period.
C) Once a foreign-owned enterprise is in full operation, it is usually not subject to periodic monitoring.
D) Investment laws usually provide that any modification to an investment agreement, including an increase or decrease in the size or scope of a project, has to be approved by the home state.

Question

Quizplus · Accepted Answer

Many countries require foreign investors to complete their projects within a specified time limit. This is to ensure that the project is implemented in a timely manner and to prevent speculative behavior.

B is incorrect because many countries do require periodic reports during the start-up period.

C is incorrect because foreign-owned enterprises are often subject to periodic monitoring even after they are in full operation.

D is incorrect because investment laws usually provide that any modification to an investment agreement has to be approved by the host state, not the home state.

Which of the Following Statements Is Most Likely to Be