Legal Environment Analysis

1. Describe the legal environment of the target/host/foreign country (same as the project), making specific references to

– the rule of law (to what extent is the country governed by law as opposed to arbitrary decisions of individual government officials)

and

– laws that govern foreign direct investment (for example, are there provisions to attract foreign direct investment, such as tax incentives, most-favored-nation treatment, dispute resolution fora; or provisions that restrict foreign direct investors such as high local content requirements or currency exchange restrictions).

2. Discuss challenges and opportunities for American investors posed by the legal environment.

3. Based on the challenges and opportunities you have identified through your research, formulate two recommendations, with your supporting arguments, to an American investor to successfully navigate the country’s legal environment.

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