Legal Risk in Transnational Investment and Its Countermeasures

Abstract

In today's world, economic globalization has become an irreversible trend. Various countries and regions are gradually becoming important entities in economic globalization. Transnational investment faces a number of legal challenges and risks, including investment restrictions, differences in legal systems, corrupt practices and dispute settlement mechanisms. To address these issues, investors should have a thorough understanding of the legal differences between their home and host countries, make use of international treaties and agreements, and improve dispute settlement mechanisms in bilateral agreements. To draft a clear and comprehensive investment agreement that defines the rights and obligations of the parties involved and includes dispute settlement provisions, in addition, investors should assess and address potential legal risks through due diligence, diversification of investments, purchase of loss insurance and use of entities that provide legal protection. The need to prioritize legal considerations is essential to successful cross-border investments and to protect investments in global markets.