Question

1. There have been several attempts to reach a consensus on an International Investment Agreement among countries around the world. This attempt, although it started in earnest right after WWII, has been a failure. Explain why. Discuss the future direction that UNCTAD has been pushing for to address this issue.

Answer 1

INTERNATIONAL INVESTMENT AGREEMENT

In vestment agrremnts are transactions which allows a business or person an ownership interst,noe or in future in a company for exchange value. International investment agreement is a treaty amoung differen countries to adres problems or issues in cross border investment. It is usually for ensuring protection , liberalization and promotion of investments and also covers portfolio investment and foreigh direct investment. bilateral investment treaties are most common amoung international investment agreement(IIA). it dealt with protection , treatment and admission of investments from foreigh countries. it covers investment made by either industries or individuals. it increase investment flow amoung 2 countries and set standars. Countries which conslude IIA themselves commits specifis standards on foreigh investments within the country. There are many other agreements deaig nwith foreign invstment s such as free trade agreements, ecnomic intergration agreements, economic patnership agreements.Many countries faced heavier crisis in the market for a long time

World war II has it affect on international trade and investments.It is the 75 th anniverasy of WWII is coming.Economy has struggled a lot due to the war US has spend around $6.3 triilion after the war in economy. The heavy depression causes reduced production , deflation and also adversly affect the ecnomic stability of country.The WWII has made unpredict changes in world economy. Many countries come across depression due to the damage of production industries.WWII is the time of industrial destructions rather then constructions.So many contries have devastated due to the war economically.Country US has benefits due to the capbility of raiing technology after the war.There is yearly contract in GDP has observed.WWII caused death of around 70 million lives.WWII had increased unemploymentt, exports and imports so investment had also gone bad .War was consumed only about 20 percentage of US ecnomybut the country have raised out after the war.

UNICTAD is established and came to existence in year of 1964 . It is the main part of UN secretriat which assembles and organises trade relationships through increasing investment and trade btween countries . It had woked amound under developed countries and improved economic capability. After WWII many countries have facing defict and the UNICTAD had solve these issues by its function.   UNICTAD is dealing on investment ,trade to increase the oppurtunities of development.   Bilateral agreeements covers border issues and conclude reginal or bilateral levels. international tax agreements deal with double taxation .It is an part of united nations secretiat inorder to increase the intergration and facilitate world economy. It has given assistent to other developing countries and promotes investment.It objective was to create policies.it had facilitates exports and production of good thus it had result in increased investmne ttrend in ecnomy.UNICTAD had taken many patnership initiatives also give way to increase in investment.